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Personal Pensions
Pensions are a long term investment, and the tax man is on your
side. So be sure to take full advantage.
Who are pensions for?
Pensions are for anyone who wants to provide an income for themselves
when they reach retirement age. The State pension is small and if
you don't have access to a company pension scheme, the only real
alternative is to provide one for yourself. The good news is that
the government realises that people need help, so it provides
generous tax breaks for those who decide to help themselves.
Why should I start a pension?
The basic State pension does not enable most people to maintain
their standard of living. This situation is likely to get worse
as there are more pensioners and people are living longer. It's
a case of there being fewer workers to pay in to the State scheme
and more pensioners taking money out. So the only way to make sure
you have enough money to live on comfortably is to be a member of
an occupational pension scheme or to provide a pension for yourself.
Stakeholder Pension
A stakeholder pension scheme is a type of low-cost pension scheme
that allows you to save in a tax-efficient way for your retirement.
You simply contribute during your working life, then when you come
to retire, the funds which you have built up provide you with an
income for the rest of your life.
What are the advantages of saving for retirement with a Stakeholder
pension?
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Your contributions receive income tax relief, normally at your
highest rate
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Your investment will grow free of UK capital gains tax
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You can take up to 25% of your fund as a tax free lump sum
at retirement
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Your dependants do not normally have to pay tax on any cash
lump sum they receive if you die before retirement
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Maximum charges of 1.5% of the fund in the first 10 years and 1% thereafter
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Easy to transfer funds from other plans into a Stakeholder
scheme
What is the minimum amount I can pay?
The minimum contribution can be as low as £20 per payment
(i.e. £20 per month).
Although we hope that this site has been very informative for you,
pension requirements will be different for everyone, and it is important
that you seek expert advice regarding the most appropriate course
of action.
More information on Stakeholder Pensions can be found at the Pensions Advisory Service website.
Please contact us to arrange a meeting
if you wish to discuss your pension requirements.
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