Posts Tagged: Defined contribution

Pensions: Annual allowance tax relief

Posted by & filed under Finance, UK Pensions.

The UK annual allowance is a limit imposed by HMRC on the amount of tax relief available for pension contributions in any one tax year which, for UK tax purposes runs from the 6th of April to the 5th of April the following year. This applies to both defined contribution (money purchase) and defined benefit… Read more »

UK pension rules and regulations

Posted by & filed under Pension rules, UK Pensions.

HMRC rules and regulations governing pensions in the UK fall into three main categories which can be further subdivided. Current pension rules therefore cover the following areas; Retirement age State retirement age Minimum retirement age Tax rules Income tax relief Pension withdrawals Death tax rates Additional rules Pension transfers Free impartial advice Unauthorised payments Retirement… Read more »

UK Private Pension Options

Posted by & filed under Finance.

There are multiple types of pensions available in the UK. What follows is an explanation of each of the main versions including their advantages and disadvantages; Personal Pension Plan (PPP) Stakeholder Pension (SHP) Self Invested Personal Pension Schemes (SIPPS) With-profits pension plan All of these are variations of a defined contribution scheme and therefore follow… Read more »

Pensions explained

Posted by & filed under Pension rules, UK Pensions.

What follows is a full explanation of pensions including; Definition of what a pension is United Kingdom options (defined benefit & defined contribution) Overseas options (including QROPS) Why pension transfers are used Pension benefits Pension drawbacks HMRC & the pension regulators’ involvement Rules and regulations Rule changes Pension reform Pensions and investments What is a pension A… Read more »

Defined contribution (money purchase) pension schemes

Posted by & filed under UK Pensions.

These are pensions whose performance is largely dependent on the underlying investments though an employer operated scheme may offer it’s employees certain guarantees in respect to the returns received. Unlike defined benefit schemes this does not extend to guaranteeing their annual retirement income. They are available through both company sourced and privately purchased plans.  … Read more »

Retirement Planning

Posted by & filed under UK Pensions.

Why retirement planning is important Previously, defined benefit pensions provided employees with a known income upon retirement. Unfortunately, they are now rarely available resulting in most people owning defined contribution pensions instead. The latter provide no such guarantees about the level of pension income you can expect. It is therefore your responsibility to ensure that your savings… Read more »

UK Death Tax Changes 2014

Posted by & filed under Pension rules, UK Pensions.

UK pension rules are expected to undergo further changes following George Osborne’s recent announcement at the Conservative conference. These changes are likely to to be confirmed in the autumn statement (3rd December 2014) and subsequently enacted from April 2015. This has now come to pass. Following major pension changes announced in the 2014 UK budget… Read more »

Pensions Made Easy

Posted by & filed under Pension rules, QROPS, UK Pensions.

Why does pension advice have to be complicated and boring? After all the majority of people would probably prefer simple, fun, easy to follow help, a pension guide for dummies if you will, over complex jargon filled information. Pensions and retirement planning are serious but by engaging you though a more down to earth viewpoint… Read more »

Investing for Retirement

Posted by & filed under Finance.

The most common method of saving for retirement is through a pension scheme. The two main types are defined benefit (final salary) and defined contribution (money purchase) pensions though only the latter is dependent upon investment returns to provide an income. How to invest money It is important to save tax efficiently. This will give you… Read more »

Final Salary (Defined Benefit) Pension Transfers

Posted by & filed under UK Pensions.

When transferring a pension, whether domestic or overseas into a QROPS (Qualified Recognised Overseas Pension Scheme), International SIPPS (Self Invested Personal Pension Scheme) or similar, the goal is always to get a better deal. There are two types of pension scheme: defined benefit (final salary) and defined contribution (money purchase). Not all pension schemes are… Read more »

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