Personal Touch Financial Services

Pensions

Saving for retirement is something that most of us put off for as long as we can. But the reality is that the sooner you start paying into a pension the better your income in retirement is likely to be.

Pensions are long-term investments with special tax rules – for example,  contributions currently qualify for Income Tax relief at your highest rate.

You can't access the money in your pension until you reach age 50, going up to 55 by 2010. Some pension schemes have additional rules about when you can take your benefits – check with your scheme provider.

While there are alternative ways of saving these usually come with their own risks. The pension is generally seen as the most suitable option for most people

Contributions

There is no limit on the amount of contributions that can be paid. There is a limit on the amount which enjoys tax relief. The annual limit is the lower of one times salary or £235,000. There is no limit at all in the year in which benefits are taken in full. Those not earning or earning less than £3,600 per year, will be able to contribute up to £3,600 per annum.

So let us help you find the pension which is right for you.

There are three main types of non-State pension. They are:-

• Occupational salary-related schemes - offered by some employers;
• Occupational defined contribution schemes (also called money purchase pensions) - offered by some employers; and
• Stakeholder pensions and personal pensions - offered by some employers, or you can start one yourself. You may also be offered a group personal pension at work. These are also money purchase pensions.

What are the benefits?
Although you don’t have to join any pension scheme offered through your job, it’s usually a good idea to join an occupational pension scheme if it’s available because:-

• your employer normally contributes; and
• often you also get other benefits, such as:
• life insurance which pays a lump sum and/or pension to your dependants if you die while still in service;
• a pension if you have to retire early because of ill-health; and pensions for your spouse and other dependants when you die.