Here is a list of the types of pension that may be available to
Basic State Pension:
Funded by your national insurance contributions made throughout
your working life. The state pension age is currently 65 for men
and between 60 and 65 for women depending on when born. It will
increase gradually to age 68 in the future.
Available to anyone with an adequate national insurance contribution
(NIC) record but this is reduced proportionately where the individual
has not been able to meet the NIC requirements for a full pension
. Whilst benefits are higher for married couples their individual
NIC contributions record will affect their pension entitlement.
It is possible that you may not even get a state pension if you
have paid less than the minimum level of national insurance contributions.
Additional state pension formerly SERPS
(state earnings related pension scheme):
To ensure that low and non earners, such as carers receive a
supplementary pension to enhance their basic state pension. And
also to encourage high earners to move to privately funded pension
A personal pension with a maximum initial management charge of
You can choose where your monthly or lump sum contributions are
invested within the fund range offered by the pension provider.
You can also choose your retirement age from age 50 to age 75.
You are entitled to tax relief on your contributions.
Similar to the stakeholder pension but initial management charges
may be higher. The provider may provide a much broader range of
investment funds . You can also choose your retirement age from
age 50 to age 75. You are entitled to tax relief on your contributions.
Self-invested personal pension (SIPPS):
This is no more than a variation on the personal pension plan
with the same contribution limits and tax rules and can be used
by high earners to top up occupational schemes . SIPPs also offer
a wider range of investment opportunities.
SIPPS can broadly be broken down into the following three catagories;
Full SIPP: this offers the
widest range of investment opportunities which include direct
investment in commercial property and individual listed securities
in the UK and overseas.
Hybrid SIPP: these are offered
by an insurance company offering a choice of that providers insured
funds and non insured investments . Often the hybrid SIPP provider
will stipulate a minimum contribution level to the insured funds.
Deferred SIPP: this type
of SIPP is a personal pension written under a SIPP trust with
lowers charges than those applying to a SIPP.
Transfers to and from overseas pension
If you are considering leaving the UK to work ( or retire ) permanently
abroad, or returning overseas after working in the UK for a few
years, it is possible to leave your benefits in your UK pension
arrangement, but it is also possible to transfer your benefits
to an occupational scheme or individual pension type arrangement
in the other country.
Transfers from a UK pension scheme to
a qualifying recognised overseas pension scheme (QROPS).
A QROPS scheme must meet strict requirements and approvals and
you should contact us at derekb@moneyhelpUK.com
for advice on this type of scheme.
If you are considering working permanently in the UK having previously
worked permanently abroad it is possible to transfer your overseas
pension arrangement to a registered UK occupational scheme or
registered individual arrangement.
As with all pension type transfers the financial services authority
(FSA) have strict guidelines on giving advice and you should contact
us at derekb@moneyhelpUK.com
for further information.
Who Provides Pensions.
An insurance company.
A unit trust scheme manager.
A building society
An EEA investment portfolio manager
An authorised open-ended investment company
An operator, trustee or depository of a recognised European
Economic Area (EEA) collective investment scheme.
To discuss your pension
Contact Derek Brownie on
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