{"id":770,"date":"2020-05-14T10:45:06","date_gmt":"2020-05-14T09:45:06","guid":{"rendered":"https:\/\/thefinancialeducation.co.uk\/?p=770"},"modified":"2020-05-14T14:08:17","modified_gmt":"2020-05-14T13:08:17","slug":"pensions-schemes","status":"publish","type":"post","link":"https:\/\/thefinancialeducation.co.uk\/index.php\/2020\/05\/14\/pensions-schemes\/","title":{"rendered":"Pensions Schemes"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Occupational Pension Schemes<\/strong><\/h2>\n\n\n\n<p>There are two types <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Final Salary (defined benefit) \u2013 the pension the employee receives is calculated as a proportion of salary at retirement.\u00a0 Final salary schemes have become too expensive so few employers now offer these<\/li><li>Money Purchase (defined contribution) \u2013 An agreed contribution is invested for each members.\u00a0 The fund at retirement is used to purchase benefits.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/www.youtube.com\/watch?v=j68CoGiJz-0&#038;feature=emb_logo\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Personal and Stakeholder Plans<\/strong><\/h2>\n\n\n\n<p>\u2022Offered by insurance and investment companies \u2022Owned by the individual \u2022Accumulated fund is used to provide income in retirement \u2022Stakeholder plans are personal pensions with the government set standards <strong>for charges, access and terms<\/strong> (remember as CAT)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Self Invested Personal Pensions<\/strong><\/h2>\n\n\n\n<p>\u2022Known as SIPP \u2022Still a Personal Pension \u2022Allows the plan-holder a wider range of investments including commercial property making this suitable for business owners \u2022The SIPP can borrow up to 50% of the fund value subject to lender\u2019s criteria \u2022Usually more expensive but possible to find low <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> and deferred SIPPs\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Group Schemes<\/strong><\/h2>\n\n\n\n<p>\u2022Many employers offer access to a group personal pension plan (GPP) \u2022Each employee has their own plan \u2022The employer collects the contributions and pays to the provider \u2022These larger schemes often mean lower charges \u2022Employers can set conditions and will often match individual contributions to a certain amount (FD scheme is 7.5%) after a minimum period of employment<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Workplace Pensions<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>A new National Employment Savings Trust (NEST) has come into force. <\/li><li>This is being phased in from 2012 to 2018 with the effect on larger employers first <\/li><li>A key feature is auto-enrolment although employees are able to opt-out <\/li><li>Employers can use NEST as the main scheme or a supplementary scheme or set up a new scheme<\/li><li>A workplace pension is a way of saving for your retirement that\u2019s arranged by your employer.<\/li><li>Some workplace pensions are called \u2018occupational\u2019, \u2018works\u2019, \u2018company\u2019 or \u2018work-based\u2019 pensions.<\/li><li>A percentage of your pay is put into the pension scheme automatically every payday.<\/li><li>In most cases, your employer also adds money into the pension scheme for you. You may also get\u00a0<a href=\"https:\/\/www.gov.uk\/tax-on-your-private-pension\/pension-tax-relief\">tax relief<\/a>\u00a0from the government.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/www.youtube.com\/watch?time_continue=14&#038;v=Fgrtxy3XJZ8&#038;feature=emb_logo\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.gov.uk\/plan-for-retirement\">Plan for  your retirement<\/a><\/h2>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Advance planning for retirement | Age UK\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/vZm5RrouqR4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Planning for retirement: Tax\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/YLY3ZLGHbY4?start=3&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Planning for retirement: Annuities\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/v8qltRk4xVg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Further Reading<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.gov.uk\/government\/publications\/rates-and-allowances-pension-schemes\/pension-schemes-rates\">https:\/\/www.gov.uk\/government\/publications\/rates-and-allowances-pension-schemes\/pension-schemes-rates<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.gov.uk\/workplace-pensions\">https:\/\/www.gov.uk\/workplace-pensions<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Occupational Pension Schemes There are two types Final Salary (defined benefit) \u2013 the pension the employee receives is calculated as a proportion of salary at retirement.\u00a0 Final salary schemes have become too expensive so few employers now offer these Money <a href=\"https:\/\/thefinancialeducation.co.uk\/index.php\/2020\/05\/14\/pensions-schemes\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[19],"tags":[],"table_tags":[],"class_list":["post-770","post","type-post","status-publish","format-standard","hentry","category-405af"],"featured_image_src":null,"author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"education-hub-thumb":false},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_comment_info":3,"uagb_excerpt":"Occupational Pension Schemes There are two types Final Salary (defined benefit) \u2013 the pension the employee receives is calculated as a proportion of salary at retirement.\u00a0 Final salary schemes have become too expensive so few employers now offer these Money Read More ...","_links":{"self":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=770"}],"version-history":[{"count":10,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/770\/revisions"}],"predecessor-version":[{"id":838,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/770\/revisions\/838"}],"wp:attachment":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=770"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/table_tags?post=770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}