_ 1 Stop Independent Stakeholder Pension Advice _ Company Pension Schemes Explained

Company Pension Schemes Stakeholder Cafe.com Quick Links:   Quotations   Compare & Buy Pensions   Get Help or Advice Your employer may offer access to a Group Personal Pension Scheme or a Stakeholder Pension.  If so you should read the sections on Personal Pensions and Stakeholder Pensions .  Alternatively, there may be a company pension scheme available.   For greater detail on company pension schemes visit Pensions Adviser.com.   These are normally Occupational Money Purchase Schemes or Final Salary Schemes - if you know that your company has one of these you should check which sort you have.  Your employer has to make a contribution to this type of scheme on your behalf - you normally can also contribute.   Money Purchase Schemes - these are so called because any money saved by you or your employer is invested in a retirement fund.  On retirement you may be eligible for a tax-free lump sum and the remainder of the fund in invested to provide an income for you.  This income when you retire must increase each year in line with retail prices up to a maximum of 5%.  As a result your starting pension may be lower but it will increase each year.  The maximum you can contribute to a scheme of this type is up to 15% of your earnings.   Final Salary Schemes - The pension you receive on retirement is based on a fraction of your earnings when you retire and the number of years that you have been a member.  Likewise, the tax-free cash available at retirement is based on a similar calculation.  For example - If you are a member of a 1/60th Pension Scheme - and had been a member for 20 years and had earnings at your retirement date of £30,000.  The maximum pension you would get would be calculated as follows: Scheme Basis 1/60th X Number of years as a member (20 years) = 20/60th i.e.  1/3rd of your salary < /FONT > < /FONT > 1/3rd X your earnings (£30,000) = Maximum Pension £10,000 per annum.  < /FONT > < /FONT > (This would increase by retail prices up to a maximum of 5% per annum.  This figure would normally be reduced if you wanted to give up some of your income to take part of it as tax-free cash (subject to Inland Revenue rules).  Can I increase my Company Pension Scheme Benefits? Stakeholder Cafe.com Quick Links:   Quotations   Compare & Buy Pensions   Get Help or Advice