Everyone Needs a Retirement Pension

Even if retirement seems far in the future, it's never too early to start investing in an Offshore pension.Offshore Personal Pensions(also known as private pensions)provide you with a regular income in your retirement.

The days of the Statutory Government Pension providing a comfortable retirement until death are long gone. There are so many aspects of pension planning to consider, and the difference between a comfortable and a miserable, penny-pinching old age can depend on the advice you seek and the arrangements you make.

State Pension, Company Pensions, Private Pensions, Stakeholder Pensions

State Pension

State Pension is paid to those who are eligible. You may be eligible for the basic State Pension and additional State Pension. Anyone who has enough qualifying years from their National Insurance (NI) contributions record is entitled to some basic State Pension.

The age you receive your UK State Pension could be changing.

The state retirement age is rising in line with life expectancy and anyone now under the age of 30 will have to wait until they are 70 years old to receive the state pension. This follows several increases already, whereby the pension age jumps to 65 by 2018 for women and from 65 to 66 by 2020 for men and women.

Offshore Company Pensions

Offshore Company pensions can be set up by UK employers to provide pensions for their employees on retirement. They are also sometimes called Offshore occupational pensions.

Rules vary for different company pensions, but basically there are three ways that money can be paid in: by you from your salary, or by your employer, or by both you and your employer. You will get tax relief on the amount you put in up to the annual allowance.

 

Offshore Personal Pensions

You can save as much as you want into a private offshore pension, depending on how much you can afford. You will get tax relief on the amount you put in up to the annual allowance.

Private or personal retirement pensions are good for the self-or those who's Employer do not provide a Company pension.Employees not in a company pension scheme or those who wish to top up the money they would get from a company pension can also benefit from a personal pension.

Group Offshore Personal Pensions Through Your Employer

Your employer may arrange for an offshore pension provider to set up a offshorepersonal pension through your workplace.

A Offshore personal pension arranged in this way is called a 'Offshore Group Personal Pension Plan'. Although they are sometimes referred to as company pensions, they are not run by employers.

 

Working out the Value of Your UK State Pension

The amount of basic State Pension you get depends on the National Insurance contributions you are credited with throughout your working life.

The amount of additional State Pension you receive is based on your earnings and National Insurance contributions as an employee.

Did You Know That

Did You Know That...

• …since April 2010 the earliest age you can take your UK personal pension has been 55? Most people choose to wait until they are 60 or 65. However, with the introduction of QROPs you may be able to take this earlier than 55 ,subject to certain criteria.

  There are certain circumstances that will allow you to take your private pension before you are 55. Your Peter Male Financial advisor will be able to tell you what your scheme allows.

  How to Keep track of Your Private Retirement Pension
  
  

• You will receive an annual statement from your pension service provider. This will tell you how much pension you can expect to receive if you continue to contribute at your current level.

  The final value of your retirement pension fund will depend mainly on how much you have contributed and how well the fund's investments have performed. Please bear in mind that the value of investments can go down as well as up.

  Remember that choosing a personal pension scheme is an important financial decision and there are many things to consider, such as the rules on making contributions, how the money will be invested and whether the pension scheme is 'contracted out' of the additional State Pension.

  A Peter Male Financial Advisor will help you decide which particular personal pension is suitable for you.