Personal Pensions

Introduced in July 1988, Personal Pension Plans (PPPs) were originally designed for the millions of employed & self-employed individuals who did not have access to a company pension scheme.

The introduction of Auto Enrolment, upon which employees are being compulsorily enrolled, is very similar to a personal pension plan but does not necessarily meet everyones needs.

What is not disputed is that retirement planning is important, and this is where we can help you. We are able to listen to your needs, go through the available options with you and make recommendations to meet your needs.

Furthermore, we can also help you set up pension plans for non-working spouses, your children and grandchildren.

How they work

Unlike some company schemes, all personal pensions work on a ‘money purchase’ basis. This means that the money you save each month or each year into your Personal pension plan is invested (typically in investment funds) and is then used at retirement to provide you with pension benefits. So in theory the more you save the better your pension should be at retirement.

At Retirement

On reaching retirement, you use the money that has built up in your personal pension to purchase pension benefits, these benefits can be taken in a variety of ways.

The value of your pension at retirement is mainly dependent upon:

• How much money you've paid in over the life of the plan
• How well the fund has performed

So a Personal Pension Plan is really just a long term savings plan (albeit a very tax efficient one) that is designed to produce a fund at retirement.

At retirement, provision can be made to protect your pension from the effects of inflation, protect your income in the event of your death, and make provision for your spouse, nominated beneficiary or dependants.

A PENSION IS A LONG TERM INVESTMENT THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND ON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES, AND TAX LEGISLATION