Personal Pensions And The Pensions Industry , livre ebook

Straightforward Publishing - Patrick Grant

Découvre YouScribe en t'inscrivant gratuitement

Je m'inscris

Obtenez un accès à la bibliothèque pour le consulter en ligne
En savoir plus

77 pages

English

Vous pourrez modifier la taille du texte de cet ouvrage

Obtenez un accès à la bibliothèque pour le consulter en ligne
En savoir plus

A propos
Informations
Extrait

Description

A Straightforward Guide to Pensions and the Pensions Industry is a concise guide to the changing world of pensions and the pensions industry as a whole. People who are now confused by the many and varied pensions on offer and also bewildered by the sheer number of providers will be enlightened by this comprehensive guide. The book will also shed light on the current climate where uncertainty concerning pensions and annuities is prevalent. In particular changes to retirement ages will be highlighted.

Informations

Publié par	Straightforward Publishing
Date de parution	25 avril 2017
Nombre de lectures	0
EAN13	9781847167408
Langue	English

Informations légales : prix de location à la page 0,0300€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

A Straightforward Guide To Pensions and the Pensions Industry
Patrick Grant
Straightforward Publishing www.straightforwardco.co.uk
Straightforward Guides
Straightforward Publishing 2017
All rights reserved. No part of this publication may be reproduced in a retrieval system or transmitted by any means, electronic or mechanical, photocopying or otherwise, without the prior permission of the copyright holders.
ISBN: 978-1-84716-696-8 eISBN: 978-1-84716-572-5 Kindle ISBN: 978-1-84716-571-8
Printed by 4edge www.4edge.co.uk
Cover design by Straightforward Graphics
Whilst every effort has been made to ensure that the information contained within this book is correct at the time of going to press, the author and publisher can take no responsibility for the errors or omissions contained within.
Contents
Introduction
Chapter 1-Pensions and Planning for the Future
Planning for the future
Sources of pension and other retirement income
The Pensioners Income Series
Average income of pensioners-couples
Average income of pensioners-Singles
Regional incomes
Sources of pensioner incomes
Pensioners income according to position
Chapter 2-Income needed in Retirement-Planning Ahead
Income needs in retirement
What period to save over
Inflation
Everyday needs
The impact of inflation
Chapter 3-Sources of Pensions-A Summary
The State Pension
The over 80 pension
Occupational pensions
Stakeholder schemes
How much can be invested in a stakeholder pension?
Other ways to save for retirement
Chapter 4-The State Pension
Who is entitled?
How many qualifying years to get the full State Pension?
Using someone else s contribution record
Class 1 contributions
Class 2 contributions
Class 3 contributions
Class 4 Contributions
Pension credits
The guarantee credit
The savings credit
If you reach State Pension age on or after 6 April 2016
National Insurance Credits
The State Pension age
Additional state pension
Contracting out
Increasing your state pension
Filling gaps in your record
Deferring your state pension
Women and Pensions
Particular issues for women
Effects of changes to the state pension on women
Have you told the government you are a carer?
Chapter 5-Private Pension Savings-General
The lifetime allowance
Protecting the Lifetime Allowance
The annual allowance
Limits to benefits and contributions
Taking a pension
Chapter 6-Choosing a Personal Pension Plan
Investments
Self-invested Personal Pensions (SIPPs)
How it works
What you can and can t invest in
How you access money in your SIPP
Small Self-Administered Schemes (Ssas)
Releasing funds to finance business
Fees and other charges
Other benefits from a personal pension
Retirement due to ill-health
The Pension Protection Fund
The Financial Assistance Scheme
In the case of fraud or theft
The Pension Tracing Service
Chapter 7-Job Related (Occupational) Pensions
Limits on your pension savings
Tax advantages of occupational schemes
Qualifying to join an occupational scheme
Automatic enrolment
When your employer doesn t have to enrol you
If your income is low
What happens when you re automatically enrolled
Delaying your enrolment date
What your employer can t do
Choosing a pension scheme
Employers/employee contributions
Opt-out
Pension entitlements
Final salary schemes
Money purchase schemes
The cash balance scheme
Tax
Contributions into occupational schemes
Contracting Out Through Occupational Schemes
Rules-defined benefit pension scheme
Chapter 8-Group Personal Pension Schemes
What is a group personal pension?
How your pension grows while you are working
What you need to think about
Changing jobs
Chapter 9-Stakeholder Pensions
About stakeholder pensions
Stakeholder pensions defined
Who should take out a stakeholder pension?
How much can be invested in a stakeholder pension?
Trust schemes and non-trust schemes
Financial Conduct Authority (FCA)
Financial advice on stakeholder pensions
Tax and national insurance
Tax relief
Regular information for members
Existing employer stakeholder schemes
Automatic enrolment and stakeholder pensions
Contributions to stakeholder pension employer schemes
Monitoring by scheme managers or trustees
Chapter 10-Leaving an Occupational Scheme
Obtaining a refund of contributions
Chapter 11-Transferring Pension Rights
Transferring to a UK pension scheme
Before you make a transfer
Payments from an overseas pension
Get help and advice
Winding up of occupational pension schemes
Chapter 12-Pensions for the Self-Employed
The State Pension
How best to save for retirement
Make the most of your pension pot
Self-employed: what kind of pension should I use?
What is the annual allowance?
Rules for doctors and dentists
Chapter 13-Pensions and Benefits for Dependants
State pensions
Death after retirement
Occupational and personal schemes
Dependant s pensions from occupational schemes
Lump sum death benefits
Chapter 14-Protecting Pensions
Occupational schemes
Other schemes
Protection of personal pensions
Complaining about pensions-State pensions
Personal pensions
Chapter 15 Options for Retirement and Tax
Retirement options and taxation of pensions
Options for using your pension pot
Keep your pension savings where they are
Use your pension pot to get a guaranteed income for life
The options
Basic lifetime annuities
Investment-linked annuities
Tax issues
Use your pot to provide a flexible retirement income
Tax issues
Take your pension pot as a number of lump sums
Tax issues
Take your pension pot in one go
Tax issues
Mixing your options
Tax-free lump sums when mixing options
Chapter 16-Reaching Retirement Age
How to claim state pension
How the pension is paid
Leaving the country
Pensions from an occupational scheme
A pension from a personal plan
New regulations for pension providers
Advice schemes for pensions
Beware of scams

Useful addresses
Index
Introduction
The subject of pensions and the provision of pensions has been a hotly debated topic over the last decade. Essentially, the issue of catering for future needs has been a problem that has vexed government, employers and individuals.
This book takes a look at the issues surrounding pensions and also discusses the different areas of provision, from the state pension to personal pensions and also the tax and benefits implications. We also take a look at accessing pension funds to boost business, which is not widely known or understood.
One thing is for sure, if a person does not, either through an occupational scheme or through some other type of personal pension plan, ensure that they are saving regularly to provide a decent level of pension for their retirement, then they will find themselves, as millions have, in a poverty trap, relying on the state pension alone.
The government is currently reviewing what should happen to the State Pension Age after 2028. This is because people are living longer, which means that pensions are becoming increasingly expensive to provide. Ultimately, there will be pressure to reduce the overall bill, and to gradually increase the retirement age.
All too often, people wake up to the need to build up a pension fund when it is too late. When a person is young, the last thing they want to be thinking about is saving for their old age.
The whole thrust of this book is to help individuals understand the pensions system in the United Kingdom, to open eyes to the implications of not providing for retirement and to point the way to the right sort of plan for them.
The book is split into 4 different sections, the first section covering planning for pensions and pensions generally, the second section covering sources of pensions, state pension, occupational pensions, stakeholder pensions and other forms of savings. The third section covers pensions for dependants and also pensions for self employed and for professionals such as doctors and dentists. Protection of pensions is also covered. Finally, we discuss options for taking your pension and the tax implications of doing so.
One such option which is outlined is that of using your pension pot to fund your business, which can be done before you reach the age of 55. At the very least, the information contained within should enable a person to make an informed choice and to begin to provide security for the future.
Patrick Grant 2017
***************
Chapter 1
Pensions and Planning for the Future
Planning for the future
The main principle with all pension provision is that the sooner you start saving money in a pension plan the more you will have at retirement. The later that you leave it the less you will have or the more expensive that it will be to create a fund adequate enough for your needs.
In order to gauge your retirement needs, you will need to have a clear idea of your lifestyle, or potential lifestyle in retirement. This is not something that you can plan, or want to plan, at a younger age but the main factor is that the more that you have the easier life will be. There are two main factors which currently underpin retirement:
Improved health and longevity-we are living longer and we have better health so therefore we are more active
People are better off-improved state and company pensions
Sources of pension and other retirement income
Government statistics indicate that there is a huge gap between the poorest and richest pensioners in the United Kingdom. No surprise there. The difference between the richest fifth of single pensioners and the poorest fifth is about 400 per week. The poorest fifth of pensioners in the UK are reliant mainly on state benefits whilst the wealthier groups have occupational incomes and also personal investment incomes. The outline below indicates sources of pension and also t