Personal Pensions

Find the best type of pension to suit your needs

With the Pension industry becoming more advanced and flexible, let us find the right solution to meet your retirement needs.

This is an area of constant change and we recommend regularly reviewing your pension provision to plan for a secure and enjoyable retirement.

 

An occupational pension (through an employer’s pension scheme)

This could be a final salary scheme (referred to as defined benefit) or a money purchase scheme (usually referred to as defined contribution). Pensions deriving from final salary schemes are usually based on your years of service and final salary multiplied by an accrual rate, commonly 60ths. The benefits from a money purchase scheme are based on the amount of contributions paid in and how well the investments in the scheme perform.

Personal pensions schemes (including stakeholder schemes)

These are also money purchase schemes and are open to everyone and especially useful if you are self-employed, just for topping up existing arrangements. From October 2012, all employers now have to offer their employees, who meet certain criteria, automatic enrolment into a workplace pension.

Self-Invested Personal Pensions (SIPPs)

A Self-Invested Personal Pension (SIPP) is a tax-efficient wrapper within which a wide range of investments can be held. SIPPs have the same tax benefits and regulations as conventional personal pension plans but have control over the investment choice – each SIPP is unique to the individual. Otherwise, it operates in the same way as a conventional personal pension in respect of contributions and eligibility, for tax purposes. A SIPP must appoint a scheme administrator, usually the recognised product provider.

The complex nature of a SIPP means that it is not suitable for all investors. Often, the benefits of ‘self-investment’ are only advantageous to people with very large funds and/or investors with some level of sophistication when it comes to investment decisions. Often, there are additional charges for arranging and dealing within a SIPP and these charges would erode smaller funds quickly.

The benefits of using a SIPP include being able to invest in:

  • Stocks and shares listed or dealt on an Inland Revenue recognised stock exchange, including AIM
  • Stock exchanges that are not recognised by HMRC
  • Unit trusts, Open Ended Investment Companies (OEICs)
  • Warrants, covered warrants
  • Government stock and fixed interest stock
  • Unquoted shares
  • Commercial property
  • Property funds.

We will be able to provide more details and make a recommendation based on your circumstances.  Complete the form below and we will get in touch with you to arrange your free 30min initial consultation.

Personal Asset Management are Independent Financial Advisors with over 50 years combined experience.  We have clients throughout Torbay, Newton Abbot, Exeter and the South of England, with our office based in Kingskerswell.

Our services include investment advice, Inheritance Tax planning, pension advice and retirement planning, mortgages and equity release.