Cards & Banks
Pensions & Retirement
Shopping Mall - UK
Subscribe to our FREE Insurance and Financial
tips and secrets
newsletter with hundreds of regular updates on financial &
related matters and sometimes you may get to download eBooks on many
topics absolutely for FREE! Enter your full name and email
below to subcribe to our Newsletter! Your privacy is guaranteed!
to Shainik Financial Services, United Kingdom
Bring You the KNOWLEDGE & INFO!
Here you will find knowledge and Information
relating to Planning for Retirement, tips, and information
pnsions & More...
All In One Place!
Hundreds of Insurers & Financial Service Providers
Save Money And Time
Or Simply Read Articles & Tips
Or Subscribe to Our Newsletter for Regular features and updates on
Insurance/Financial topics as well as Online Shopping with NEWS
relating to Lifestyle, Travel, Food and Receipies. To Subscribe Please
Fill Our Newsletter Form on Left.
Retirement Pension - A Start
you for visiting our Pensions and Retirement Section.
Here we have
provided you with knowledge and information relating to Planning for
Retirement. We hope
you find these informations usefull and be
find what you are looking for. On left you will be
able to navigate for your needs, be it car insurance or home insurance
mortgages etc. Please take your time to explore.
present scenario, an average life expectancy
for a man is 76 and that for a woman is 80. This means your retirement
can last for 20 or 30 years and you could be living on your retirement
income for many years.
The basic state pension can be a start, but this would not be enough to
maintain and enjoy the standard of living you are accustomed to. Let us
look at how to start and boost your pension.
you need to find out how much your state pension is likely to be
when you retire. Get a state pension forecast. This tells you in
today's money the state pension you have already earned and what you
can expect to have earned by the time you come to take your pension.
You can obtain the forecast report from the Pension
Services or call 0845 300 0168.
earlier you begin paying into a pension scheme, the better. Money
put into a pension scheme in your 20s will have 40+ years to grow,
which means a bigger Fund Value when you reach 65, and therefore a more
A rough rule of thumb if you're just starting to save for your pension
now is that you should halve your age and contribute that as a
percentage of your salary throughout your working life. So, if you are
30, you should be saving 15%. The older you are when you start, the
higher the percentage you will want to contribute.
To find out exactly how much you would have to pay each month to reach
your target pension, you can use an online pensions
you choose a pension scheme, you should try to work out the amount of
money you'll need in order to live comfortably in retirement.
It's likely that major outgoings such as your mortgage will have been
paid off, but you'll need to take the following into account:
age at which you intend to retire. The lower the age, the higher the
pension you'll need
much state pension you're likely to receive
basic living expenses
you have children or other dependants
lifestyle, including travel and hobbies
you want to live
other assets you have such as savings, investments and
should also take inflation into account. If you assume prices are
rising by about 2.5% a year on average, then a 40-year-old aiming to
retire on a pension of £20,000 in today's money is likely to
need as much as £40,000.
The State Pension - You
cannot depend on it!
you retire at age 65, the state pension alone would not be sufficient
in order to maintain your current lifestyle. The basic state pension is
£87.30 a week (2007-8), but how much you actually get will
your National Insurance contributions that you have contributed
throughout your working life.
For a full pension, a woman must have paid contributions for 39 years
and a man 44 years. By 2020, the Government plans to set the retirement
age for men and women at 65, in which case both will have to have made
contributions for 44 years.
You can build up an additional state pension or state second pension
based on your earnings during your working life. This is not available
if you are self-employed or unemployed, though there are exceptions for
carers and people who cannot work due to disability or illness. You
need to bear in mind that governments can change the legislations for
State Pensions and benefits at any time. Therefore, it may be unwise to
rely on on it!
most clear way of supplementing your state pension is by setting up a
private pension. Should your employer be offering an occupational
scheme, you should join. These days occupational schemes are becoming
less common and also less generous, however, it's still worth joining,
as your employer may also make contributions.
If you do decide to open a private pension plan, you pay into a pension
fund which, when you retire, is used to buy an annuity or pension for
life. The value of the pension will depend on
amount and level of your contributions
- The fund
perfomance over the years
available annuity rates when you retire.
into personal pensions also earn tax relief.
The stakeholder pension is the most straightforward private pension
plan. It has to meet strict Government standards and maintain low
charges. You can pay in small amounts as and when you want, without
penalty, and you can also transfer to another provider without penalty.
Stakeholder pensions are ideal for moderate earners or if you have
irregular income but can afford to save.
Age - How is your Private Pension Paid
you retire, if you have a personal or stakeholder pension, then you
have to convert at least 75% of your pension fund into an income. To do
this, you must buy an annuity, which is an investment that pays you a
regular income for life. You can take the rest as a tax-free lump sum.
Annuity rates have plunged in recent years and once you start receiving
income from the annuity you are stuck with it, so choosing the right
one is an important decision. It's vital to shop around and compare
aren not the only way to save for your retirement. There are other
means, i.e Individual Savings Account (ISA), buying shares, saving in
other investments such as bonds, putting money into property, comodity,
of us are worried about the future value of state pension and work
pensions and are thinking about joining a private pension scheme. If
you are one of those, spare some time to check out your options outline
Know your goals
Start by working out what pension(s) you're already in (if any), and
what they are likely to be worth to you when you retire. These may be
illustrated on statements that providers send you annually. Have a
think about the sort of retirement income you think you'll need, and
how much you can afford to save each month.
You may want to talk through the issues around private pensions with an
independent financial adviser, ideally one who specialises in personal
With a private pension, you usually pay either a regular monthly amount
or a lump sum to a pension provider who invests it in a fund on your
You can buy a private pension plan from major reputable Insurance
companies though these days other financial institutions like Building
Societies and Banks offer them.
The final value of your pension fund will depend on how much you have
contributed and how well the fund's underlying investments have
Saving in a private pension plan is tax-efficient. Money is paid in
before income tax is deducted, so at current rates every £100
invested costs you £78 if you're a basic rate taxpayer and
£60 if you pay tax at the higher rate
Know the difference
There are two main types of private pension:
main difference is that with stakeholder pensions the charges are
limited and you can transfer investments between funds and providers.
However, the choice of investments tends to be narrower, though this is
Personal pensions offer a wider range of funds in which to invest but
the charges could be higher.
Choose the Best
There is a vast range of personal and stakeholder pension plan
providers and there are hundreds of individual plans to choose from.
Most plans offer a choice of funds to invest in, which are primarily
stocks and shares based. The value of your pension fund can rise as
well as fall in line with the value of the type of investments.
You can choose your own investments.
Managed fund is most common that most people opt for or Investment
Funds or with-profits plans. With managed funds, fund managers choose
investments that in their opinion will perform best and switch them as
market conditions change. With Investment Funds (also termed as
unit-linked), you share in the performance of a fund of underlying
investments. With With-Profits funds, mostly offered by Life Insurance
companies who invest your contributions in stocks, shares and
gilt-edged securities etc. Your investment grows as the company adds
yearly bonuses and once these bonuses are added to your fund, usually
they are not taken away. These bonuses are declared after deducting
life office's expenses. They offer terminal bonuses on maturity which
are not guaranteed.
Which fund you choose will largely depend on your attitude to risk -
the higher the risk, the higher the likely return - or loss! But you
can also choose to invest only in ethical funds that screen out
companies that don't behave in a socially responsible way.
If you don't want to make the decision yourself, many pension providers
can choose a fund for you, depending on your level of risk, age and
other key factors. Remember:-
When choosing a pension fund, past performance is not a guide to future
Pension providers charge you for starting up and running your pension.
These charges are normally deducted from your fund. The charges for
stakeholder pensions are fixed at a maximum of 1.5% of the fund each
year, falling to one per cent after 10 years. Although many personal
pensions have reduced their charges in line with stakeholder pensions,
it's important to check at the outset, as charges can take a sizeable
chunk out of your pension fund over the years.
If you stop working for a while or take a cut in income then it's
useful to be able to suspend payments for a while, or reduce them,
without penalty. Check too whether there are any restrictions or
penalties if you want to transfer your funds.
Occupational pension schemes are generally a good deal; not only does
your employer make contributions into the scheme but often they pay the
management fees too.
Your contributions to your occupational pension scheme are deducted
from your earnings before income tax is worked out. This means you
automatically get tax relief up to your highest tax rate through the
PAYE system. With an occupational pension scheme you can top up your
benefits by making additional voluntary contributions (AVCs) and still
get tax relief on them. Ask your company about its AVC scheme, or look
into paying freestanding AVCs (FSAVCs) into a private pension plan.
Shainik Financial Newsletter
news on financial markets , success tips,
freebies and more! Delivered
to your inbox every Friday!
to our Newsletter and get a book on
"Understanding Genesis of Bad Credit"
In this book you will get lots of tips on how to do credit-repair
easily. Check the form on left!
Products And FREE Videos