Pensions are of course used to provide you with sufficient money to live
comfortably once you retire from work. There are many different ‘tools’ used to
save for retirement and the taxation and investment elements of pensions can
appear baffling. Financial Advisers specialise in explaining, recommending and
monitoring pensions for people.
There are currently four sources of pension to fund for your retirement:
The basic state pension for people who've paid National Insurance contributions while at work or have been credited with contributions.
Additional state pension - This is now the state second pension. Before 6 April 2002, you built up SERPS (state earnings related pension scheme) pension. Both are available to employees earning more than a given amount (£90 a week from 6 April 2008). Many people who are not working because they are caring for young children or, say, an elderly relative or because of disability or long-term illness are also able to build up state second pension (but not SERPS). Additional state pension is not available in respect of self-employment income.
An occupational pension through an employer's pension scheme - if your employer runs a pension scheme, it’s usually a good idea to join.
A personal pension scheme (including stakeholder schemes) open to nearly everyone and especially useful if you are self-employed or your employer doesn't run a company scheme
For personal and Stakeholder pensions, the size of the pension fund (and
therefore the amount of pension when you retire) depends on four main factors:
The amount of money invested into the plan by you and your employer.
The investment performance of the selected funds.
The charges of the plan throughout the term.
The terms for buying a pension when you decide to retire (these include the
annuity rates and current legislation).
KNFM Ltd and Andrew Copeland Mortgages Ltd are both authorised and regulated by the Financial Services Authority.
KNFM Ltd is Registered in England and Wales No. 4713684
Office address: 230 Portland Road, South Norwood, London SE25 4SL FSA No. 227737
Andrew Copeland Mortgages Ltd is Registered in England and Wales No. 4016124
Office address: 230 Portland Road, South Norwood, London SE25 4SL FSA No. 303024
Andrew Copeland Mortgages Ltd is a wholly owned subsidiary of KNFM Ltd