We’re a hardworking lot in the Wirral, often commuting to the likes of Liverpool and Chester on a daily basis, so it makes sense to ensure you get what you deserve in retirement. Occupational pension schemes provide a tax-free lump sum or an income when you retire. They can also provide money for your dependants if you die before your retirement age. Talk to Endeavour Financial Planning today to find out how an occupational scheme can help provide financial security when you retire.
Tax efficiency
Contributions to an occupational scheme are made by both the employer and the employee. Although the employer will generally fix the contributions as a percentage of your salary, you can voluntary contribute more.
The employee’s contribution is tax free, although this is subject to an annual allowance. It’s best to check www.gov.uk to find out what the most recent threshold for tax relief.
Planning for retirement
If you are in a workplace pension scheme, then the human resource department will be able to tell you how much your pension savings will be worth when you retire. If you do not consider this enough to live on, then you can either contribute more or take out other savings products such as ISAs.
Security
Occupational schemes are regulated by the Pensions Regulator. Workplace occupational schemes have trustees who are obliged to manage the pension fund responsibly and efficiently.
If a pension scheme loses money because of fraud, then the Fraud Compensation Fund will provide money for pension members who have lost money.
Changing jobs
If you change jobs, then you may be able to carry on paying into the old pension scheme or combine the old scheme with a new one from your new employer.
If you have worked for less than two years with the old company, you may be able to claim back all the money you have contributed.
Becoming self-employed
If you leave a company and become self-employed, you may be able to carry on contributing to your existing occupational pension scheme. Alternately, you can set up a personal or stakeholder pension scheme.
Leaving a pension scheme
Businesses auto-enrol their workers in pension schemes, but any employer can opt out of the pension scheme. This is not usually advisable though, as you will lose out on the tax relief on contributions.
Be prepared
An occupational scheme is a good way to save for your retirement, and other investment strategies are available too. To discuss your retirement options, contact Endeavour Financial Planning today. We can help you develop a clear plan for a financially secure retirement.
A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interests rates and tax legislation
Tax Planning and Auto Enrolment advice are not regulated by the Financial Conduct Authority.
