Pension Q&A

Pension Q&A (18)

Wednesday, 20 March 2013 13:58

Remember...

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You can't access your pension savings until you retire. Under the current rules, even if you retire early, you are not able to claim your pension before the age of 55. Also, the amount of pension income provided by your retirement fund will depend on a number of factors, including investment returns and annuity rates when you retire

Wednesday, 20 March 2013 13:58

Are there any risks I need to know about?

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Investing in stock market shares is not without its risks. They can rise significantly in value over many years, go into periods of decline, or fall suddenly in value, with no guarantees you will get back the full amount you invest.

The key point to remember is that saving into a pension is a long term investment, and the longer you remain invested in the stock market the better you tend to do.

Wednesday, 20 March 2013 13:57

What happens when I 'cash in' my pension fund?

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You can normally take up to a quarter of your savings as a tax-free cash sum. The rest is used to buy you an income in retirement, called an annuity.

Wednesday, 20 March 2013 13:57

What is the earliest I can retire?

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The earliest you can currently take your pension is your 55th birthday.

Wednesday, 20 March 2013 13:57

What happens to my savings if I die before I retire?

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They will be paid to the beneficiaries you named on your application. If you need to update your beneficiaries at any time, please contact us.

Wednesday, 20 March 2013 13:56

What happens if I stop work altogether?

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Even if you're not earning you can still pay into your personal pension and receive tax relief on up to £2,880 of payments each tax year. You can pay in more than that if you wish but you won't receive tax relief on the extra amount.

If you can no longer spare the money you can stop your payments into your pension. You can start saving again whenever you're ready.

Wednesday, 20 March 2013 13:56

What happens if I'm off work?

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If you're off work but are still being paid (e.g. paid maternity leave or sick leave), you can continue to pay into your pension and you'll still receive tax relief on your payments (on up to 100% of your annual earnings and also subject to an upper annual allowance of £40,000). If your employer is paying into your pension, you'll need to check with them whether they'll continue to contribute while you're off work.

If you have time away from paid work, remember you can stop payments into your personal pension if you need to. You can start saving again whenever you wish. If you do make payments into your pension you'll still receive tax relief on up to £2,880 of payments each tax year, even if you have no earnings for that tax year. You can pay in more than that if you wish but you won't receive tax relief on the extra amount.

Wednesday, 20 March 2013 13:55

What happens if I change jobs?

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The first thing is to find out if your new employer offers a company pension, and whether they contribute to it. If so, you should join, so you don't miss out on any payments they're offering. You can also keep your personal pension, and keep paying into it if you wish.

If you become self-employed or your new employer doesn't offer a pension scheme, it's a good idea to keep paying into your personal pension so your retirement savings stay on track.

Whatever you choose to do, please let us know if you've changed jobs.

Wednesday, 20 March 2013 13:55

How do I claim the tax relief?

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Whether you are employed, self-employed or not employed, we claim basic rate tax relief for you and invest it in your pension.

If you pay income tax at the higher rate (or additional rate that applies for those with an annual income above £150,000) you can claim any extra tax relief you are due from the HMRC in your annual tax return.

Yes, you can. But if you haven't started a pension yet and are hoping to retire within five years time, we strongly recommend you seek independent financial advice, so you can decide on the best options available to you at this time.

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*Please note we have updated our email address and trading style to LenRose Wealth Management but still under Active Financial Partners Ltd and part of the Harwood Wealth Management Group PLC.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.


Jonathan Hales

Independant Financial Advisor

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T: 01795 477744

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