So what is the difference between each pension option?
Single Tier State Pension
The new State Pension is a regular payment from the government that you can claim if you have reached State Pension Age (SPA) on or after 6 April 2016. It is for people who have paid enough National Insurance Contributions during their working life.We understand that pensions can be really confusing, that's why AKORN makes it easy for you to choose the best plan for your future. Remember, you’re never too young to start a pension – the earlier you start, the more money you will have to live on come retirement.
On the flip side, the longer you delay paying into a pension, the more you will have to pay in to build up a decent fund in later life.
So you can secure your future, our expert advisors specialise in explaining, recommending and monitoring pensions for you.
How much could I get a week?
The full Single Tier State Pension of £179.60 per week is available to men born on or after 6 April 1951 and women born on or after 6 April 1953.
You'll need to have 10 qualifying years to get any new State Pension or 35 qualifying years for the full amount.
The amount you get can be higher or lower depending on your National Insurance record.
The Basic State Pension
Like the Single Tier State Pension, this pension is also a regular payment from the government. But it only applies to people whose State Pension Age falls before 6th April 2016. It is again available to people who have paid enough National Insurance Contributions during their working life.
How much could I get a week?
The full basic State Pension is £137.60 per week
Workplace Pension Schemes
A workplace pension (occupational pension) is taken out through an employer’s pension scheme. There are two types:
* A final salary scheme
* A money purchase scheme
Final salary schemes are usually based on your years of service and final salary multiplied by an accrual rate, commonly 60ths.
Whereas the benefits from a money purchase scheme are based on the number of contributions paid in and how well the investments in the scheme perform.
Since October 2012, all employers now have to offer their employees automatic enrolment into a workplace pension.
Personal Pensions Schemes
Personal pensions schemes include stakeholder schemes. And, like with some workplace pensions, these are also money purchase schemes. The key difference being is they are open to everyone.
In fact, these schemes are especially useful if you are self-employed for topping up existing arrangements.
Before you invest in a personal pension scheme, get clear and tailored financial advice to ensure you make the right choice.
Other Retirement Options and Products
* There are now a vast array of different products that you can use at retirement to provide benefits and financial security. Two common choices are
* The traditional form of annuity - this provides a regular income stream. Flexi-access Drawdown that enables lump sums of benefits to be taken either as a one-off payment or over a given number of years. Given the complexity and choice all individuals now have, it is important to seek advice before making any decisions. All our pension advisers are experts in financial services and offer impartial advice based on your goals.
If you want any advice on pensions, speak to our advisors for free. Contact us now on 01254 584330 for independent advice.