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Finchley Office
Fairchild House
Redbourne Avenue
Finchley
London N3 2BP
T: 020 8371 3111
F: 020 8371 3112
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7a Wyndham Place
London W1H 1PN

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February 2016 - The Clock is Ticking!
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Personal Pension Schemes

The state pension of just over £450 a month, or £115.95 per week is unlikely to be enough for you to live the post-retirement lifestyle you’ve dreamed of and at Vintage Wealth, we have two distinct options for you to choose from, Personal Pensions and Stakeholder Pensions. The state pension has been given an enormous boost from August 2017, when those who retire after April 6 can look forward to a weekly payment of £155.65 (£8,094 a year). This reflects a £39.70 weekly rise on the current full basic state pension of £115.95 (£6,029 annually).

Personal Pensions

A Personal Pension is a long-term investment policy that allows you to accrue a pool of money to be used in any way you wish when you retire.

  • They are available to UK residents under the age of 75
  • The policyholder contributes into the plan and the funds are invested
  • The amount payable on retirement is dependent on how much has been paid into the plan, the performance of the investment fund and the annuity rate at the date of retirement

This type of plan allows you to take either an income in retirement or a reduced income and up to 25% of the fund as a tax-free lump sum.

Stakeholder Pensions

Stakeholder Pensions have been available since April 2001 and they work in essentially the same way as Personal Pensions. The Government has set a number of minimum standards which must be adhered to -

  • The pension must provide an income for retirement using a minimum of 75% of the fund. The remaining 25% can be taken as a tax-free lump sum
  • Since 2005, the maximum annual charge is 1.5% of the fund value each year for the first 10 years, then 1% thereafter
  • The minimum contribution is £20 per month, however you can stop payments at any time
  • The plans have no entry or exit penalties
  • If you do not choose a fund, your money will be invested in a ‘default investment fund’

Both Personal Pensions and Stakeholder Pensions benefit from basic rate tax relief. As a practical example, for every £100 you want to save, you only pay £80. The remaining £20 is added by HMRC.

There are limits to the amount you can contribute in any one year as well as an annual allowance but our pensions experts will walk you through everything you need to know.

For further information about Vintage Wealth ’s range of pensions, please call 020 8371 3111 or email info@vintagewealth.co.uk


 

Vintage Wealth Management Limited is authorised and regulated by the Financial Conduct Authority. FCA Number 593380. Registered in England and Wales No. 07879453.
The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk