In times of financial and political uncertainty, it is vitally important to know that your money is secure, and that your plans for the future are watertight. Pension schemes are one of the most popular ways of ensuring that you have funds available to you whatever the coming years may bring, meaning that you can live in comfort when you stop work. But what kind of pensions are available for you? The experts at Rigby Financial have put together this simple guide to help you understand the options you can choose from.
1. The Workplace Pension
Some of the most common types of pension scheme are the kinds used by employers. No matter the size of their company, every employer is required to offer a workplace pension by law. To access the pension scheme at your place of work, simply talk to your manager or CEO and they will arrange this with you. It should have already been offered to you. Workplace pension schemes come with the addition of employer contributions, meaning that the amount you pay into your pension will be added to first by your employer and then by the government. If you get a new job,depending on the pension provider your old employer used, you may still be able to keep paying into the first pension pot until you reach retirement age, or you may have the opportunity to combine your old pension scheme with your new one. If you wish to clarify what options you have before you leave a job, be sure to contact your employer to discuss the possibilities. The downside to a workplace pension is that your company will subscribe to one particular plan with its own set parameters that you as an individual will not usually be able to contest or adapt.
2. Personal Pensions
Self-employed individuals, or those without a workplace pension scheme, have a considerable array of choice available to them in terms of personal pension plans. The downside to these particular plans is that you will have to take on any charges inherent insetting up your own scheme – whilst in the workplace pension these costs are covered by the company. Options include a Basic Personal Pension plan, where you simply pay a set amount into your pension each month. Different providers offer different services attached to these plans, so doing your research is vital!Stakeholder Pensions differ slightly in that they are often more flexible, and the amount you are required to pay in is usually relatively low. The charges on these schemes are capped, and you are able to choose a basic default scheme if simplicity is what you are after. You can also opt for a SIPP, or a Self-Invested Personal Pension, which is a little more involved, and while they allow you to make greater contributions to your pension pot, you are also able to take charge of the way the money is invested, which can often be challenging.
For further information and ways to find the pension scheme that is best for you, visit Rigby Financial today.