The stereotypical view of a financier or accountant is that they're, well boring. Not renowned for being the most excitable of characters someone that sits and organises other people's financial and tax payments for their living is, although essential and much appreciated, not the most exciting of industries to be in. With a struggling and under-performing economy though gone are the days where we can dump our receipts and banking information on our accountant's desk to take care of it for us, the need to take more financial responsibility is now unavoidable. We need to be aware of and plan not only for the present, but our financial future too in the form of personal pensions.
Finance and pensions are a confusing market to try and navigate your way around unaided, it's always highly advised therefore to speak to a professional prior to signing any investment agreement. With their certification and working knowledge of the pensions market and various schemes they can ensure you make the choice that is right for you and your family in terms of what you are able to pay, your lifestyle, your desired lifestyle when you retire and your income. They can also decipher the often complex and - let's be frank - boring terms and conditions surrounding each scheme so that you don't have to!
The main purpose as discussed above of you having a personal pension is securing a financial future and ensuring you have adequate funds to support you throughout your retirement. There's increasing uncertainty around the state pension so looking after yourself with money you have invested privately throughout your career has never come more highly recommended. Personal pensions are a tax free investment too although there are likely constraints that go along with this dependent on earnings etc. It's also important to note the age at which you must take your pension is between 50 and 75 too, although the minimum age is expected to rise.
So, how are personal pensions divided into their various subtypes? The three main umbrellas which most schemes fall under are insured personal pensions, self invested personal pensions and stakeholder pensions. To begin with insured personal pensions these can be contributed to by both employer and individual. Individuals can choose from a number of options so although insured personal pensions are more restricted in a sense, there are still plenty out there to suit people's needs for which these are the most suitable choice. Again it pays to be aware of the surrounding conditions so speaking to an advisor is essential.
Self invested personal pensions are the next subset and these schemes are defined by the freedom they offer the individual as the person paying into the scheme is ultimately responsible for their own investment decisions. The final type of scheme is the stakeholder pension. These were brought in to cater for those individuals that earn less, they are cheaper to run and offer those earning less a chance to save for and secure their future too.
Looking towards the future and securing the funds for our retirement has never been more important with bad news concerning the economy seeming to be at every turn. Just ensure that you speak to a professional and get their opinion on the best option for your situation before you sign any scheme agreements!
Finance and pensions are a confusing market to try and navigate your way around unaided, it's always highly advised therefore to speak to a professional prior to signing any investment agreement. With their certification and working knowledge of the pensions market and various schemes they can ensure you make the choice that is right for you and your family in terms of what you are able to pay, your lifestyle, your desired lifestyle when you retire and your income. They can also decipher the often complex and - let's be frank - boring terms and conditions surrounding each scheme so that you don't have to!
The main purpose as discussed above of you having a personal pension is securing a financial future and ensuring you have adequate funds to support you throughout your retirement. There's increasing uncertainty around the state pension so looking after yourself with money you have invested privately throughout your career has never come more highly recommended. Personal pensions are a tax free investment too although there are likely constraints that go along with this dependent on earnings etc. It's also important to note the age at which you must take your pension is between 50 and 75 too, although the minimum age is expected to rise.
So, how are personal pensions divided into their various subtypes? The three main umbrellas which most schemes fall under are insured personal pensions, self invested personal pensions and stakeholder pensions. To begin with insured personal pensions these can be contributed to by both employer and individual. Individuals can choose from a number of options so although insured personal pensions are more restricted in a sense, there are still plenty out there to suit people's needs for which these are the most suitable choice. Again it pays to be aware of the surrounding conditions so speaking to an advisor is essential.
Self invested personal pensions are the next subset and these schemes are defined by the freedom they offer the individual as the person paying into the scheme is ultimately responsible for their own investment decisions. The final type of scheme is the stakeholder pension. These were brought in to cater for those individuals that earn less, they are cheaper to run and offer those earning less a chance to save for and secure their future too.
Looking towards the future and securing the funds for our retirement has never been more important with bad news concerning the economy seeming to be at every turn. Just ensure that you speak to a professional and get their opinion on the best option for your situation before you sign any scheme agreements!
About the Author:
The Financial Planning Partners Ltd offer financial advice around the country. Based in Crowthorne they cover Berkshire and Surrey including Ascot, Sandhurst and Camberley.
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