Individual Pensions

Why should you think of arranging a pension plan? After all there is the State Pension but many people are unaware of how little that may provide.

The time will come when you want to take things a little easier by working less, and eventually you may wish to stop working completely. But unless you save money for retirement you are likely to find it difficult to retire in comfort.

Remember, although by the time you retire you should have planned to have your debts paid off, you will have more leisure time. This means you are likely to continue to need significant income if you are to enjoy retirement.

You can save in a pension plan or make other investments. The choice is yours. So what are the advantages of a pension?

  • You get tax relief on contributions to a pension, so your pension fund gets an immediate boost.

  • The investment in a pension fund has special tax treatment, so that your investment can grow faster.

  • When you take income from your pension, you can decide to take up to 25% of the fund in cash, tax-free.

  • Pension money is in a separate pot to your other investments, and it is not easy to take money out just on a whim. This helps to make sure that the money is used for your retirement.

  • If you face financial difficulty, say through illness or unemployment, and you need to claim means tested State benefits, your pension fund is ignored, unlike other savings.

  • If you are made bankrupt, your pension fund is usually safe from creditors.


    • What types of pension are there?



    Follow the links below for further information.

  • State retirement pension

  • Company pension, salary related

  • Company pension, contribution based

  • Stakeholder pension

  • Personal pension

  • Self invested personal pension (SIPP)


    • Where is my money invested?



    A wide range of investments is available, depending on the pension plan that you arrange. Contact us to discuss what may be most suitable for you.

    When should I start saving?



    As soon as possible. The sooner you start start to save, the more time your pension savings have to grow, and the bigger your pension fund is likely to be when you come to retirement. Remember, it is not now unusual for people to be spending in excess of 25 years in retirement. Saving enough from 40 years of work to enable you to live without working for 25 years is hard enough. It just gets harder if you delay.

    How much should I save?



    A great deal depends on your individual circumstances. The later your leave it, the more you will need to save. Contact us to discuss your circumstances.

    What about the disadvantages?



  • You can’t get your hands on the money in your pension until at least age 50 (this age is due to increase to 55).

  • You can only have 25% back as a lump sum; the rest has to be used to create retirement income, which will be taxed.

  • As things stand right now, a private pension can reduce the amount of State Pension Credit that you receive. But savings outside of a pension can also affect that. We believe that making independent provision is the only way to be sure that you will have something on top of the State pension when you retire.


    • Contact us to discuss a suitable budget.



    And remember, your choice of pension investment is important. Whilst it is likely that you will do better over longer terms by investing your pension with a degree of risk, the value of ‘risk’ investment can fall as well as rise and you are not guaranteed to get back the full amount that you invested.