Personal Pension Plans (PPPs) were originally designed for the millions of employed & self-employed individuals who did not have access to a company pension scheme.
We can research the Whole market on your behalf to find a suitable Pension plan, it may be that a PPP meets your needs for retirement provision. These contracts are very flexible and can allow tax relievable contributions to be made of up to 100% of your earnings or £3,600 (whichever is the greater) subject to a maximum of £40,000 per annum which is the current annual allowance. Furthermore these plans can be set up for non-working spouses and even children and grandchildren.
How they work
Unlike some company schemes, all personal pensions work on a ‘money purchase’ basis. This means that the money you save each month or each year into your Personal pension plan is invested (typically in investment funds) and is then used at retirement to provide you with pension benefits. So in theory the more you save the better your pension should be at retirement.
After the Governments announcement of more Pension freedom, on reaching retirement you now have several options dependent on your personal circumstances and risk outlook. Your pension can be taken in the form of either income only or income with a tax free lump sum, if you so wish you can withdraw your entire pension pot although it will be subject to income tax.
The value of your pension at retirement is mainly dependent upon:
- How much money you’ve paid in over the life of the plan
- How well the fund has performed
- Level of Pension Commencement lump sum taken. (Up to a maximum of 25% of your pension fund)
At retirement, provision can be made to protect your pension from the effects of inflation, protect your income in the event of your death, and make provision for your spouse or dependents. Benefits can currently be drawn from age 55 onwards.
A PENSION IS A LONG TERM INVESTMENT THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND ON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES, AND TAX LEGISLATION
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