Pensions
Pensions
Pensions & Retirement Planning
There are basically three phases to retirement planning:
Phase 1 - Where the pension funds are being built up
Phase 2 - Pre-retirement whereby the pension funds are consolidated
Phase 3 - The selection of the method of how the pension funds are to be used in order to sustain the lifestyle required.
For those of you in Phase 1 it can be confusing as to which type of plan is most suitable for you and it is therefore important to take advice. Your personal circumstances, type of employment and tax status need to be taken into account.
The following is a list of the main types of pension contracts available with more information in the links to the left:
- Stakeholder Pension(SHP)
- Personal Pension Plan(PPP)
- Group Personal Pension Plan(GPP)
- Executive Pension Plan(EPP)
- Self Invested Pension Plan(SIPP)
- Employers Schemes(Occupational Pensions)
Phase 2 is the consolidation phase. Due to personal circumstance you may have built up a considerable amount of pension funds but they are in a number of places and may be subject to differing tax regimes. There is a need to ensure these funds are placed in an environment whereby they can be used to provide for what they were designed for in Phase 3. When Phase 3 comes along you want to be in control.
Phase 3 is what you have looked forward to for many years and with longevity as it is nowadays there may be many years to come and it is important that the planning takes account of this. Again there are plans which need to be put in place and more in depth information can be found in the links to the left for Annuities, Phased Retirement and Drawdown.
Pension Legislation changed quite considerably in 2006 and will have quite an effect on future retirement planning. There are changes taking place in 2012 which will affect future pension provision, especially in the workplace and with some state benefits.
It is important then that good advice is sought and this is where we at Sunday Independent Financial Advisors Ltd offer our services. We offer a 'no obligation' meeting to discuss your arrangements with you. Either call 0800 848 8093 or use the contact details link on the website.
Open Market Option (OMO)
Take advantage of this if you are considering taking your pension and you have the money purchase version. Read more about it in the Annuities section on the left