News

Taking 25% out of your pension pot may seem attractive

Since Pension Freedoms were introduced in April 2015, people are now able to access their pension funds more flexibly and can take up to 25% of their pension as a tax-free lump sum, at age 55 or above. Pension drawdown, also known as income drawdown allows you to access a quarter of your private pension […]

Top tips to spring clean your pension

The nights may still be long but the end of the tax year is fast approaching – so now is the ideal time to think about your pension. Here are six things you need to do to refresh your pension. Step one: Forward planning The most effective way to plan for your retirement is to […]

Pensioners in drawdown fear running out of money

Since the introduction of the new pension freedoms in April 2015, more and more retirees have opted to take flexible withdrawals from their pension funds by going into what’s referred to as drawdown. The Financial Conduct Authority recently reported that drawdown has become much more popular, with twice as many pots moving into drawdown than […]

Pensions: where every little helps (a lot)

There is an assumption that unless you’re going big and starting early, saving is a waste of time. That couldn’t be more wrong. Here are three reasons why even modest saving and small tweaks can make a huge difference.

High time: Fees, funds and how a little time looking at your pension costs could save you thousands

From energy tariffs to mortgages, people who stick with the same pension provider year-in, year-out are at the greatest risk of losing out. The leading rates or most competitive prices are often reserved for those who compare the market, so the only way to cut your bills—or increase returns—is to look for a better deal. […]

How to avoid pension scams

Before you fall foul of a scam, make sure you educate yourself on how to keep safe. An increasing number of fraudulent companies and cold callers are targeting savers with pension scams, claiming they can liberate pensions for lucrative investments, only to make off with your hard-earned cash. it’s a problem we hear about often […]

Pension freedoms: making saving for retirement more appealing

Politicians, consumer groups and the investment industry, in general, welcomed the pension freedoms introduced by the government in April 2015. The changes gave people more choice and flexibility in how they funded their retirements. However, the sweeping nature of the reforms has caused one or two problems. Earlier this summer, the Financial Conduct Authority (FCA) […]

*Defined Contribution Pensions*	These are ‘Pot of Money’ pensions where the benefits provided take into account the value of the fund at retirement. They can be personal pensions or Occupational Pensions. There are no guarantees as to what pension will be provided. This will be a reflection of contributions made and investment growth.
*Defined Benefit Pensions*	These offer the promise of a guaranteed pension at retirement which reflects the length of service with an employer. It will be based on either the Final Salary or Average Career Salary of the employee. Providing the company is still in existence, there is no investment risk for the pension receiver. This type of pension is becoming less frequent.
*Private Pensions*	This is a generic term for pensions that are not workplace schemes.
*Group Personal Pensions*	Employer-sponsored schemes – each member has a personal pension plan, and their contract is with the pension provider. The employer’s role solely is to select the scheme provider, decide if there should be any restrictions on fund choices and take contributions from the employee’s pay and forward them with employer contributions to the pension provider.
*Self-Employed Pensions*	A private pension arrangement or personal pension is taken out by a sole-trader or self-employed worker.
*SERPS Pensions*	State Earnings Related Pension (formerly Graduated Pension and subsequently State 2nd Pension or S2P) was an additional element of State Pension for employees. The amount of pension was linked to the employee’s salary. SERPS was abolished in 2016 when the flat rate State Pension was introduced.
*Personal Pensions*	Private pensions are contracts between the pension member and an insurance company or another pension provider.
*SIPP Pensions*	These are personal pensions where the member has a much wider choice of investments, including commercial property and single company shares.
*Stakeholder Pensions*	Personal Pensions with a set of rules that impose amongst other things a maximum annual management charge (AMC), low minimum contribution levels (£20 per month) and an appropriate Default fund.
*FSAVC Pensions*	Private pension linked to an employer’s Defined Benefit Scheme but separate from the Scheme’s internal Additional Voluntary Contribution (AVC) arrangement – largely defunct since the rules were eased several years ago, allowing people to contribute to both personal and employment schemes as they wish.
*Money Purchase Pensions*	This is another name for Defined Contribution Pensions.