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October 17th, 2011
If you are thinking of Retiring Now you need to be considering which of the available pension income options is right for you it is important to gain as much information as you possibly can so that you can make an informed decision.
The decisions you make at the time you wish to take pension income could significantly impact upon your quality of life in retirement.
You have a number of options when you reach retirement. Currently the earliest legal retirement age, for all but those in specific occupations like sports people, is 55. You need to understand the benefits as well as the pitfalls of each of your options. Each option has good points and bad points depending on what you are looking to achieve.
The most common would be a type of annuity or an unsecured pension/drawdown plan.
Annuities are the traditional way to take benefits BUT it is claimed that in the last 5 years pensioners missed out on £7bn of income because they could not be bothered or were put off from getting the right annuity advice. This is simply crazy but the numbers quoted equate to 40% of the people with pension funds under £40,000 who took the first offer of an annuity from their existing pension provider rather than search the market for the best deal.
The good point, for the 60% of people in this example who used their Open Market Option to get the best value deal for them, is that the pension income could have been as much as 40% greater for the rest of their lives. There is no good point for the 40% of people who did not bother unless you class getting a poor income as a good point.
An increasingly popular way to take pension benefits is by an unsecured pension or drawdown plan. Don’t let the word ‘unsecured’ put you off. This type of facility can enable you to take cash and income now BUT not be locked in for life. This could give you time to allow your fund to recover in value from the recession or to in the hope that annuity rates may increase.
In addition, the government has announced a number of important changes to the rules for converting pension pots into income and cash.
The new rules for those over 55 include:
Flexible drawdown – those with secure incomes over £20,000 per year will have no limits on the income they can take.
Funds can be inherited without IHT.
Capped drawdown – an option to draw an income for life, with an annual limit, without having to purchase an annuity
More flexibility to defer taking a pension and tax free cash payments past age 75
Ending the effective compulsion to buy an annuity by age 75
For expert independent retirement advice contact Pensionlite who will provide you with a Free, Independent and No Obligation Review and Recommendation Report on your Pensions and what options best suit you.
Your report will be posted to you so you can consider the recommendations made in your own time without pressure. Pensionlite will be on hand to explain, discuss and guide you through the desired process.
www.pensionlite.co.uk e mail support@pensionlite.co.uk tel. 01952 279 379
Tags: retirement review, Retiring Now, retiring now options
Posted in Retirement Review, Retiring Now
October 11th, 2011
Retirement Advice
Every expert offering retirement advice has one thing to say today – saving for the golden years is more important now than ever before. There is more than one reason for this and it is critical for everyone to realize that it is in his or her best interests to follow this advice.
 Retirement Advice – Common Misconceptions about Saving for the Golden Years Although it is common knowledge that having a pension fund or a pension annuity is important, there are still many people across the U.K. who are yet to start setting aside money to build their nest egg.
Misplaced Dependence on the State Pension
Usually, those who have not yet started saving for their retirement believe that they can get by on their State Pension. This is not a realistic expectation because the State Pension may not suffice to cover all the needs that you may have in retired life.
Also, the laws on state pension are in a state of flux and by the time you retire, who knows how much you can expect as your state pension?
The government’s retirement advice is for people to start taking responsibility for their own retirement finances. This is the only way to ensure a financially independent retired life.
As a first step to getting an idea of what your State Pension will look like, visit the Pension Service website right away and use the online estimator there.
But, remember that the current benefits system may change, even dramatically, by the time you retire. So what you believe you are eligible for now may not be true later on.
Estimating your Retired Life Duration
Another common mistake made by many is that they fail to plan for a realistic retirement duration. It is very important to take into consideration the age at which you plan to retire when you are calculating the size of your pension fund or pension annuity. When you opt for an early retirement, your regular income ceases sooner than it would have.
Plus, you start living off your pension fund or drawing your pension annuity from a much earlier date.
If you are planning to retire early, you will also have to balance this decision by starting to save earlier and by saving more. Only by doing so can you hope to build enough of a nest egg to see you through your retirement period without financial strain.
Many older people across the U.K. are considering post-retirement employment to prevent their pension funds from decimating too quickly.
The increased strain you will put on your pension is a critical factor to consider before you decide to retire early.
According to a recent report by Lord McFall, the pension gap is all set to get worse as the years go by. He stated that the cost of living is going up, life expectancy is on the rise and people are simply turning a blind eye to the inadequacy of the state pension.
Clearly, the government and financial experts are quite right in their retirement advice that every person needs to take up saving for their future seriously.
The responsibility for ensuring a financially secure retired life is increasingly devolving on the public as it becomes clear that State pensions will simply not suffice in the coming years. For more retirement advice check out our blog.
Tags: annuities, pension Annuities, pensions, retirement, retirement review
Posted in Retirement Advice Comments Off
October 7th, 2011
Guide to Pension Comparison with Personal Pension Plans
Today, there are such a number of options available to you when you want to start your pension fund that carrying out a pension comparison is an inevitable part of the decision making process.
 Pension Comparison Of these options, the stakeholder pensions are one of the more recent schemes to be introduced. Before you decide to sign up for a stakeholder pension scheme it is important for you to understand what it is and how it works.
Comparing it with the personal pension scheme, the workhorse of the pension market, helps you understand its advantages in a better way.
An Introduction to Stakeholder Pensions
The stakeholder pension scheme first made its appearance in mid 2001 as the perfect scheme for those earning a moderate income. But soon after its introduction, the government announced that the scheme would suit people of all earnings levels.
These schemes offer great flexibility, are secure and affordable. Your contributions to the stakeholder pension plan are invested in various avenues to create a retirement fund for your golden years.
How is it Different from Personal Pensions?
The law requires pension providers to adhere to certain stipulations with their stakeholder pension schemes. Several minimum standards have been clearly outlined by the government to ensure that these schemes allow the contributor to have the greatest flexibility and best value for his hard earned money.
But the most important difference is that stakeholder pensions are low cost options when compared to most personal pension plans.
Pension providers are restricted in the kind of fund management fees they can charge for taking care of your stakeholder retirement fund. The government restricts these charges to a yearly 1% of the total value of your pension fund. The charges are debited from your pension scheme directly by the provider. In addition, stakeholder funds come with zero initial charge unlike many other schemes.
Other Advantages of Stakeholder Pensions
- Stakeholder pension funds are typically invested in a range of stocks or shares, property or even cash equivalent investments. You have greater flexibility with these schemes to choose your investment portfolio in line with your risk appetite.
- The option of taking out 25% of the net value in the form of a tax free lump sum at retirement helps you pay off your debts and enter your retirement period obligation free. The rest of the fund can be used to purchase pension annuities so that you have a regular income to depend on during retirement.
- Typically, stakeholder pensions allow you to take benefits in many different ways in line with your preferences. Pension release at age 55 is also possible with stakeholder pensions.
- You can make regular contributions to this pension scheme and also add lump sums into it when you receive some extra cash. This lets you maximize the savings that you can set aside for your retirement without putting you under financial strain throughout your career.
It is surprising that stakeholder pensions have not yet become the number 1 scheme for people across the UK.
But this can be attributed to ignorance about the scheme rather than any drawbacks with the scheme itself. If you have decided to start your pension fund, carry out a pension comparison between these and other plans to see how stakeholder plans can be your best choice.
Stakeholder pensions are affordable, flexible and secure ways to build your retirement nest egg.
Tags: annuities, pension Annuities, pension comparison, pension specialist, pensions, Providers, retirement
Posted in Pension Comparison
October 3rd, 2011
Most people looking for a financially secure retirement understand the importance of having a healthy pension fund but they fail to give pension management the attention it deserves.
 Why is Pensions Management So Important? Setting aside a respectable portion of your salary periodically for your pension is definitely the first step towards a happy retired life. Your next step should be to undertake periodic pension management. This will help you determine whether your pension will prove adequate.
Getting a Realistic Picture of Your Pension Fund
Experts advice that every person saving for his/her retirement should pay enough attention to pension management. Only this will give them an accurate and realistic picture of what they can expect from their pension when they retire.
Simply parking funds in a pension plan will not guarantee that you will have enough to live on in your golden years.
Pension Performance Varies with Different Pension Providers
One of the first things for you to know is that not all pension plans are equal. Plans managed by different pension providers vary when it comes to performance. The funds accumulated in your plan depend heavily on how your provider handles your savings.
It is only by reviewing your pension periodically that you can see how it is faring with respect to other comparable plans.
If necessary and if possible, you can change to a plan offered by another provider that enables your savings to grow at a faster pace. This means that at retirement age you can have a much bigger pension fund with the new plan than with that which your existing provider can give you.
If you plan to exchange your fund for annuities, a bigger pension fund can get you larger pension annuities, which can make for a more comfortable retired life.
Making Your Pension Release Decision
For many people who started contributing to their company pension plans years ago when they first joined the organization, there are many better investment avenues today.
They may benefit significantly by opting for a pension release, if their pension plan allows this. With the funds released, they can invest in avenues that offer much better returns than their pension plan offers. In this way, they can increase their total retirement fund, provided they are reasonably skilled in investing and make the right choices.
Even if you are not investment savvy, you can still opt for a pension release and take the advice of a trusted IFA to carry out your own investments. But all of this is possible only if you keep track of your pension and evaluate its performance at periodic intervals to see if it can be improved upon.
Switching to a Cheaper Pension Fund
Today, there are many cost effective pension plans in the market. If you are still saving with an old plan then chances are you are paying a lot more for the same service that a more recent plan could offer at a lower rate.
By switching over to a new plan you could divert your savings into the plan itself so that you have more funds in your retirement saving account. Periodic pension management is the only way in which you can identify such unnecessary costs and eliminate them at the earliest possible so that every hard earned penny works to give you a financially secure future.
Pension management helps you get a realistic picture of what to expect from your pension fund and to ensure that you do not pay unnecessarily high charges on it.
Tags: annuities, pension advice, pension Annuities, pension management, pension release
Posted in Pension Management
September 30th, 2011
An annuity is a popular investment vehicle that pays out money to investors (referred to as annuitants) in their retirement years. As the annuitant, you can choose to receive income every month, every three months, annually, or in a lump sum.
 A Primer to Fixed Annuities How much will the payout from your investment be? It will be a fixed sum based on the size of your investment, should you opt for a fixed annuity. So, how do fixed annuities work? Here’s a closer look.
Types of Fixed Income Annuities
Now that you know that a fixed income annuity assures you a set amount for a specified time period based on your investment, here’s a look at the different fixed annuity types you can opt for.
Broadly, you can choose between an immediate and a fixed annuity. In the former, as the name implies, you can fix the payout’s starting date anytime within a year or 13 months from the time of purchase.
Your annuity contract will mention the time period for which you will continue to receive the payout, and the size of the payout. You can opt for a guaranteed payment period over your lifetime (lifetime annuity), or even include another person (joint-survivor annuity) in the annuity plan.
A deferred annuity is one where you put-off the time from when you can start receiving the payout. Here, you can set up your account by making a lump-sum payment, invest in series over a time period, or do both.
Sometimes, this alternative may not be available with your annuity plan, but there is no doubting that combining periodic additions and one-time payment can help you in creating a bigger retirement source.
Besides these, there are other fixed annuity features, some of which may vary across the companies offering them. Some of these include refund annuity, instalment refund annuity, pure annuity, and temporary life annuity.
What are the Advantages of Fixed Annuities?
Probably one of the biggest advantages of a fixed annuity is that you are assured a fixed income for the specified time period. This works especially well in volatile economic and financial climates, where your market-linked investments may see dark days.
Then there are some like the index annuity, which pays you a minimum rate of interest in the event of a market downturn, and offers you a bonus during the years when the market is enjoying a good run. This is a good way of protecting your investment principle, whilst making the most of market upswings.
Another advantage of a fixed income annuity is that you can choose to receive payouts over your entire lifetime. When you opt for a lifetime annuity, you are guaranteed a fixed payout that you cannot outlive. This additional financial security in their twilight years can offers retirees much relief and peace of mind.
How to Shop for a Fixed Annuity
Once you are sure that a fixed annuity is ideal for your situation, shop for one when the rates of interest are at their peak. But avoid getting locked into a fixed annuity plan that merely offers a high interest rate while imposing inflexible terms and conditions. The idea is to strike a balance between the two, and avoid any unpleasant trade-offs.
Tags: annuities, pension Annuities, pension annuity, pension performance, pension plan advice, pension release
Posted in Pension Annuities
September 26th, 2011
A retirement annuity is a replacement for the regular income that will no longer be forthcoming once you retire. When you arrange to have a retirement annuity or pension annuity, you are actually setting up a source of funds that will take care of your everyday expenses during your retirement years.
 Get Expert Advice about retirement annuity Many people across the U.K. prefer to buy pension annuities with their accumulated pension savings because it gives them the assurance of having a regular ‘income’ for the rest of their lives. Another advantage of an annuity is that a regular fixed income like this one also makes it easier for the retiree to budget his monthly expenses so that he does not over spend.
If you have decided to opt for a pension annuity, then it is important for you to know how to choose the right one. Remember that the annuity may well become the main source of income for your entire retired life.
Paying necessary attention to details before you sign up for one and understanding the problems that could accompany it, will help you find the annuity that suits you best. Here are some ideas you can use to choose the perfect retirement annuity:
Shop Around for the Best Deals
One of the most important things to keep in mind when shopping for pension annuities is that not all of them are created equal. Often, with some research you can turn up a much better annuity than what your pension providers offer you.
That is why, experts advice that you should not sign up for the first annuity you are offered, especially without having looked at a few offered by other pension providers. Financial experts believe that by putting in enough effort in annuity shopping you could end up with one that is up to 25% more than what your provider may initially offer.
If you are not well versed with annuities and pension funds, then you could get some advice from a reputed IFA. An IFA works with your interests at heart and this means that he/ she will consider all your options and give you objective advice on what is best for you. In fact, it is also a good idea to ask your IFA for advice before choosing the kind of pension annuity you want to sign up for.
Know the Rules
Knowing the rules about annuities is important, especially if you have other sources of income and would like to postpone buying the annuity until a few years after your retire. You can postpone the annuity purchase until you reach the age of 75.
But the law regarding it is quite ambiguous and changes may be made to it periodically. If you hire an IFA, he can tell you whether any changes are being made to the law at any time. You can also keep yourself abreast of alterations to this law by following it on the news.
No matter how frugal you intend to be about your retirement lifestyle, the regular, assured income of an annuity will give you immense financial security and confidence. By weighing your options well and keeping yourself informed about them, you can purchase a retirement annuity that matches your needs best and is achievable, based on your accumulated pension fund.
Tagline: It is important for you to choose your retirement annuity with care so that you can enjoy a financially secure retired life.
Tags: advice, annuities, pension, pension Annuities, pension release, pension specialist, retirement
Posted in Pension Annuities
September 14th, 2011
Different people opt for pension release for different reasons. Whatever be your reason, it is important for you have a clear picture of what you plan to do with the funds before you have the pension release.
 Two Options for Retirement Income with Pension Release This foresight will help you utilize the funds quickly or invest them with minimum delay so that you get the most out of every penny you have saved. If you have a personal pension fund or have previous employment pensions and are considering releasing the funds accumulated there, then you have two options to choose from.
The Two Options
With the funds released from your pension you can either take out a lump sum of the money (subject to certain limitations) or you can use the funds accumulated to purchase a retirement annuity. A closer look at both these options will tell you the advantages of both.
Taking Away a Lump Sum from the Pension Fund
The most significant advantage of taking a lump sum payout from your pension fund is that you get some attractive tax breaks. You can, in fact, take up to 25% of the accumulated value of the fund tax free in this way.
If you are opting for a pension release because you have certain emergency expenses to meet, then this is the best option for you. It is not mandatory to take all of the 25% right away if you can make do with a smaller sum.
Withdraw only as much as you need to cover your emergency and leave the rest in your pension fund. At a later date or when you retire you can withdraw the rest of the 25% with the same tax advantages. Bear in mind that you have to be over the age of 55 to unlock your pension funds in this way. Plus, your pension fund should have sufficient money to allow this.
Purchasing a Pension Annuity
If you would like to convert your pension fund into a regular income source for your retirement years then you can release your pension fund and use the money to buy an annuity.
You can purchase pension annuities from insurance companies in exchange for your pension fund. The insurance company will ensure that you receive a certain amount of money periodically throughout your retirement.
You have the flexibility to choose the periodicity of the payments, which is a great advantage if you have other sources of income. This regular income takes the place of your monthly salary and keeps you financially independent even when you are no longer in employment.
Explore both these options before you decide on what you want to do with the money when you release your pension. Only by identifying which one offers the most benefits can you ensure that you get the most out of your hard earned money and diligent savings.
Taking advice from an IFA will help you decide on the best course of action to follow in case you are still unsure about what to do with your pension release funds.
If you are opting for pension release, you have two choices about what you can do with the funds – either take away a tax free lump that you invest in other avenues or purchase an annuity
Tags: advice, annuities, pension, pension Annuities, pension release, pensions, release my pension, retirement
Posted in Pension Release
September 6th, 2011
Pension transfer is a common term that you may have heard peers or older friends use during a discussion about making their retired life financially secure.
Although the term sounds simple and straightforward, there are some complexities involved in the act of transferring your pension. It is important for you understand what exactly pension transfer means and what its implications are for your retired life.
Learning more about this term well before you reach retirement age will enable you to ensure that you take the right decision regarding pension transfer at the right time.
Pension Transfer Defined
When you move the value of contributions you have made into one pension plan to another, you are opting for a pension transfer. When you do this, you are no longer a member of the original plan.
Every transfer comes with its own set of advantages and disadvantages and these have to be considered in detail before you actually complete the switch over. Many people choose to ask an IFA for advice before a pension transfer to make sure that their decision is correct.
The Three Main Reasons for Pension Transfer
There are three main reasons why one would want to opt for transferring his/her pension. Any of these is a valid reason for the transfer – provided, your assessment of the current plan as well as expectations of the new one are accurate and objective. Lets us learn more about the three reasons:
 A Beginner’s Guide to Pension Transfer Scenario 1: Your pension plan is a company sponsored scheme that is being wound up:
Many employers choose to offer pension schemes to their employees to improve retention and boost employee loyalty to the company.
Sometimes, maintaining such plans is no longer viable for the company or it may make more business sense to offer a drastically different plan. In such situations, the company pension plan you participate in may be headed for closure. If this is the case, you have to transfer the funds accumulated here to another plan wherein you can continue to save for your retirement.
Scenario 2: A cheaper option is available:
When compared with pension plans that were offered, around 10 years back, you have a much greater range of plans in the market today. There are several recent ones that give you the same benefits as your old one but at significantly lower maintenance costs.
Transferring your pension to such a cost effective plan helps you save money without forgoing any of the advantages of your existing one.
Scenario 3: You want to consolidate several smaller pensions into one for easier management:
For those who have several small pension plans or have employer plans from different companies they have worked with in the past, managing all of them can become quite difficult.
Transferring all the smaller pensions into one single plan makes it easier for you to keep track of exactly how much you have saved for your retirement. It is easier to assess the performance of one single plan to see whether your returns expectations are being met.
Transferring your pension is a good choice in any of these three scenarios. However, it is still advisable for you to ask for professional advice from a qualified IFA before you switch. The IFA will help you see exactly how the switch will benefit you and more importantly, he will point out any pitfalls in the pension transfer that you may be overlooking.
Pension transfer is a decision that should be taken after due care and assessment. Learning more about it is the first step to making the right decision about transferring your pension funds.
Tags: advice, pension, pension release, pension transfer, pension transfers, Providers, release pension, specialist
Posted in Pension Transfer
September 2nd, 2011
Pension annuities help you live your retired life in comfort without worrying about your financial health. It is important for you to ensure that you get the best possible deal where your annuity is concerned to ensure maximum financial freedom during the golden years.
 Advice about Pension Annuities This may not be an easy task because there are so many different options in the market for you to choose from. Here are some factors for you consider so that you make the right decision when you purchase your pension annuity.
The Importance of Comparison Shopping (Pension Annuities)
When it comes to purchasing a pension annuity, comparison shopping is very important. Most people simply opt for the first annuity offered by their pension providers because this is the least complex and least time consuming solution. However, this may well be the least beneficial solution for you as well. Here are a few reasons why:
- Most pension providers, especially insurance companies, try to promote their own products to potential pension annuity purchasers for the obvious reasons. The provider does not concern himself with whether the product is designed to match your lifestyle or your retired life expense levels.
- There may be other providers in the market who offer a bigger annuity in exchange for your pension fund. By taking such an annuity you have more income during your retirement which allows you to live in more comfort.
- You forgo the flexibility to choose the terms of the annuity such as payment periodicity if you limit yourself to the annuity products offered by your existing provider.
Clearly, comparing your existing provider’s annuity with other products in the market will tell you if you are getting the best deal possible with him. If not, you can simply choose to buy an annuity that meets your requirements in a better way rather than exchange your life’s savings for one that is profitable for the provider.
Getting Professional Pension Advice
Shopping for a pension annuity that is the perfect fit for you is a complex task that is simplified by asking for advice from a professional. More and more people are hiring Independent Financial Advisors (IFAs) to find pensions annuities that offer the best value for money.
An experienced IFA is familiar with the annuities available in the market so he is in a position to advice you on the best features to look for. He can help you compare some of the most attractive plans in the market with the one your pension provider is offering and point out where the provider’s plan falls short.
This puts you in a good bargaining position with your pension provider because you can negotiate with him for better terms on the annuity. If the provider cannot match your needs, you can simply switch over to one who can offer you the annuity you want in exchange for your pension funds.
An IFA also helps you evaluate your retirement needs in a realistic and objective way so that you can have an accurate idea of what you will need from your annuity. With his help you can assess the terms you should ask for in your pension annuities as regards, periodicity, continuance of the annuity after your lifetime, inflation adjusted increases etc.
The financial freedom you enjoy in your retired life depends on the size and terms of your pension annuity. It is essential for you to invest time and effort in identifying the right one to ensure an anxiety free retirement.
Tags: annuities, investment, pension, pension advice, pension Annuities, pension performance, pension plans, pension release, review
Posted in Pension Annuities
August 25th, 2011
Depending on your current Pension to take care of your financial needs post retirement is no longer a practical idea as most experts have been advising for quite a while now.
 Tips on Choosing the right Pension Providers! The government itself has been indicating that individuals need to start taking charge of their retirement savings much earlier and with much more seriousness than ever before. It is clear that without your own personal post retirement pension fund, you cannot be sure of being able to sustain a comfortable lifestyle in your golden years.
Choosing a pension plan with reliable and experienced pension providers is the only way to ensure that your hard earned money grows at a good pace so that you have enough to stay financially independent in the future.
It also ensures that your money is invested in safe avenues. Here are some tips that will help you find an effective and reliable pension provider to entrust your money with.
Transparency in Dealings
There are scores of pension providers in the U.K and it is not an easy task to find one who can offer the most value to you. But it is relatively easy to determine the provider’s transparency during your discussions with him.
A provider who is willing and able to present his investment strategies to you in terms that you can understand easily should be your choice when you are choosing a pension provider. When you talk to different pension providers, you will see that some are willing to discuss all aspects of the plan with you freely.
Such providers are likely to give you a clear and realistic picture of what you can expect from them and how you can expect your funds to grow. Once you enter into an agreement with them, you are likely to get the benefits of transparency in all the dealings so that you know exactly what is happening with your fund at all times.
This is the kind of provider who will prove ideal for your pension fund.
Experience Counts
Given that the provider will be investing your money in various avenues, their experience and skill with investing is really important. Choose pension providers who have been in the business for a good many years and have built a strong reputation for themselves.
Providers who have steered their clients through many years of economic ups and downs have the experience to spot potential problems in time so that your funds are insulated to the maximum possible.
Pressure Tactics
With so many pension providers in the market, there is a lot of competition. However keen a provider is to manage your pension fund for you, they should be willing to give you sufficient time to go through the offerings and make up your mind.
Your pension fund is a critical part of your finances and a hasty decision resulting in entrusting your money to an unreliable provider could prove disastrous. A provider who uses pressure tactics to force you into a quick decision is not one who has your best interests at heart.
Always choose pension providers who are willing to discuss matters with you as many times as required and let you make your final decision at your own pace.
Tags: advice, Individual Pension Plans, pension, pension providers, pension sharing, pension specialist, retirement review, specialist
Posted in Pension Providers
July 29th, 2011
Your pension is your financial cushion for the golden years of retirement. It is very important for you to get the most of the money you have saved up to make your retirement years financially secure.
 I Need Understanding about pension transfer The kinds of options available with pension plans have changed over the years and so have the fees charged for such plans. Today, you may find pension providers offering a much wider range of investment options at a much lower total cost.
By switching over to such a plan, you can not only save money but also invest your hard earned savings in avenues that offer much better returns or come with lower risk. Such a changeover is called a pension transfer.
When to Consider Pension Transfers?
A pension transfer is not something you should undertake without giving due thought to the outcomes. It should be done only if the switch over will result in significant benefit for you. But in some circumstances, a pension transfer is clearly the best thing to do. For example:
- There may be pension plans available today that come with lower fees and charges than the one you currently save with. Switching over to a cheaper plan lets you save even more for your retirement years.
- You can move to a pension plan with a wider range of investment options or greater flexibility with investing. A wider choice of investments makes it possible for you to choose investments that are more closely aligned with your risk appetite and returns expectations.
- You may want to consolidate your savings into a single pension plan from a number of smaller ones. Individuals who have changed several jobs usually end up with many different plans, each offered by an employer. Keeping track of your pension and assessing its performance is far easier when you opt for a pension transfer into one single plan in this case.
Other than this, occupational pension plan holders will have to switch over to an alternative plan if their company’s plan is being revoked. Some companies even allow employees to consolidate their personal pension plan with their occupational plan using a pension transfer.
Other Aspects of Pension Transfers
There are some important points to keep in mind with pension transfers. The first is that State Pension benefits cannot be transferred in this way. It is only your personal pension plan programs, stakeholder’s pension and company pensions that can be switched over into other, more attractive plans.
Most people take the advice of an independent financial advisor to determine if a pension transfer is the right thing to do. Independent financial advisors (IFAs) are regulated by the FSA and are bound to give you impartial guidance in this matter.
Taking advice from an IFA will ensure that you use your pension funds in a way that will give you the most benefit in your retirement years. There are some important rules to be followed with regard to pension transfer and your IFA is the best person to keep you informed of these.
Only when you carry out the transfer in accordance with legal requirements will you be able to enjoy the full benefit of your hard earned savings in your retirement years.
Tags: pension advice, pension release, pension specialist, pension transfers, pensions, transferring pensions
Posted in Pension Transfer
July 27th, 2011
An Overview of Different Types of Pensions
It is a well known fact that a pension provides income after an individual retires from his regular employment. Clearly, the bigger the amount you save in your pension fund, the more financial security you have post retirement. But not all pension types are suitable for all individuals.
Finding the right pension providers Also, some of these plans may be open only to those who fulfil certain criteria. For example, a company pension plan will be open only to the employees of that firm. There are many other aspects to consider about pension plans.
To understand whether you qualify for a specific pension type and how exactly it will help you, it is thus important to first understand the different kinds of pension plans.
UK Pension Providers
The UK Pension for an individual is just over £5,300 per year. This amount falls far short of what most people will need in retirement to live on and maintain the quality of life they are accustomed to.
The government’s recent stand on pension policy has made it clear that individuals will have to take the responsibility of ensuring that they have enough set aside during their working lives to pave the way for a financially secure retirement.
People are being advised to start saving earlier in life so that they can accumulate enough funds by retirement age to supplement the inadequate state pension. One important point to remember is that the amount of state pension you are eligible for depends on the amount of National Insurance contributions you have made.
It is evident that unless you take some steps to save for your future, your retired life is bound to be financially strained. This is why it is important to participate in other pension programs offered by independent pension providers or your employer.
Personal Pension
In 1988, the government introduced the concept of personal pensions for those who could not avail of a company scheme. These are highly flexible options and also offer attractive tax benefits.
These may be of different types: such as SIPPs or stakeholder pensions. SIPP pensions or self invested personal pension plans offer the greatest possible flexibility. For these plans, you sign up with pension providers who undertake to invest your funds and manage them.
By choosing pension providers with experience and expertise, you can ensure that your money grows to the maximum possible with the least risk. You can choose from a wide range of investment options in line with your risk appetite under these plans. Stakeholder pensions operate on the same lines but may come with stricter stipulations and some additional charges.
Occupational Pensions
These are pensions set up by employers for the benefit of their employees. Both public and private sector employees may avail these pensions.
A public sector scheme typically involves the accrual of a portion of the final annual salary over a maximum of 40 years of service. In addition to this, a tax free lump sum amount may also be added to the pension fund. Private sector enterprises usually offer defined benefit schemes or defined contribution schemes.
Before you make a final decision about a particular pension plan, it is important to read through all the relevant documentation and understand it thoroughly.
In addition, keeping track of your pension fund’s growth over the years ensures that you always have a realistic picture of what you can hope to receive post retirement.
Tags: annuities, lite, pension, pension providers, pension review, pension sharing, pension transfer, pensions, review
Posted in Pension Providers
July 20th, 2011
Many people in the UK have a personal pension plan but most pension holders simply ignore their pension until they are about to retire. Unfortunately, a pension cannot manage itself and you need ensure that you keep on top of it by regularly reviewing the situation.
 By managing your pension properly you could actually save a lot of money By managing your pension properly you could actually save a lot of money and ensure you have a healthy fund to support you throughout your retirement. No matter how far away the end of your employed years seem, they will creep up upon you so it essential that you are fully prepared.
Pension management might sound quite scary but it’s really not that daunting, especially when you work with a professional financial adviser. Obtaining sound financial advice can really help you manage your pension without the stress and worry.
Don’t worry if you haven’t got the faintest idea about pension management, many pension holders don’t either. This is when it is strongly recommended that you work with an independent financial adviser who can provide you with professional advice and guidance, and make the whole process a lot less scary!
If you ignore your pensions, even paid up ones from past employment, you could be paying too much in charges and getting poor investment returns. Both will affect your retirement.
Whether you are 25 or 65, taking an interest in your pension and its management is very important because it will be your livelihood once you retire. The majority of homeowners keep a close eye on their utility bills and bank account charges but often forget about their pension.
Although everyone with enough National Insurance contributing years is able to claim a State Pension, this is nowhere near enough to support your lifestyle.
It is never too late to start managing your pension, just contact an independent financial advisor and start your pension’s road to recovery. It is of course best to manage your pension from as early as possible but if you are nearing retirement, have no fear, it’s better late than never.
There are many options open to you if you are nearing retirement – for example just transferring your pension to a better scheme could save or make you money.
Contact Pensionlite on 01952 279 379 or log onto;
Tags: pension review, pensions, release pension, retirement, retirement review
Posted in Pension Management
July 15th, 2011
The simple answer is yes you probably can release your pension as the only eligibility criteria are that you hold a personal pension plan and are aged of 55 years old. However, releasing a pension is a serious financial decision that takes a lot of consideration, not something to jump in to head first. Take a look at the following frequently asked questions below:
 Why would I want to release my pension How Do I Release My Pension?
The first step is to contact a reputable financial adviser who can provide you with expert advice. The financial adviser should then be able to advise you personally as to the implications of pension release so that you can make decisions based on facts.
How Much Does It Cost To Release My Pension?
This will differ depending upon the financial adviser you work with but you should be able to source a firm who will take the payment from your released fund. This means that you don’t have to pay a lump sum upfront.
Why Would I Want To Release My Pension?
There are many different reasons you might want to go ahead with pension release but the main underlying reason is of course to obtain money. Releasing your pension allows you to access up to 25% of your pension so it can turn out to be a viable source of cash. Common reasons for releasing your pension include paying for a wedding, paying off outstanding debts and paying off a mortgage. Your financial adviser will only recommend releasing your pension if you have a viable reason for doing so.
Does This Mean I Am Retiring?
No, releasing your pension does not mean you have to retire. The government allow people over the age of 55 to access a portion of the cash without retiring. You are free to continue working as normal and continuing to contribute to your pension fund if you wish to.
What Happens To The Rest Of My Fund?
As you are not actually retiring your existing pension fund stays invested and any new contributions will simply be added to it. This pension pot can be used to purchase an annuity or take advantage of the many pension options available to you as normal when you retire.
Are There Any Consequences To Releasing My Pension?
Yes. Pension release is a major financial decision and it can have a significant impact on your future financial situation. Your standard of living throughout your retirement is entirely dependent upon your income. If your only income is from your pension then if this is reduced, your standard of living will be compromised. By releasing your pension you could always lose out on guarantees and benefits written into your pension. It is important that you discuss your personal circumstances with a qualified financial adviser before going through with pension release.
Are There Alternative Options To Release My Pension?
For most people there are other options available to getting your hands on large sums of money but these aren’t always viable. For example, as you are approaching retirement you might not want to enter loans or overdrafts associated with high interest charges. Also, lending money from a family member may also be preferred over pension release.
Contact Pensionlite on 01952 270 379 for more information to release my pension.
Tags: pension, pension advice, pension Annuities, pension plan advice, pension release, pension transfer, pensions, release, release my pension, release pension
Posted in Pension Release
July 14th, 2011
Your pension is one of your most valuable assets yet so many people abuse or neglect what they have. You spend years and year building up a fund which will support you once you end employment and enter retirement, yet how often do you check up on it? Sometimes you need to consider a pension transfer to make sure you are getting the most out of your fund.
Need more information with pension transfer Some pension providers charge a lot more than others in retirement fees, some will provide shocking standards of customer service, and some investments just will not be working for you. Whatever your reasons for considering transferring your pension, it is essential that you do a little market research.
A pension transfer is a serious financial decision as it does have some risks attached to it, but if it is right for you, it could add thousands of pounds to your retirement income.
Before stakeholder pensions were introduced by the government, there were different pension structures which were associated with very high management fees. Some of these plans are still in force today, so if you have an old pension, it is very possible that you are being over-charged and losing a lot of money. In this case it would often be recommended by an independent financial adviser that you consider a pension transfer.
Sometimes pension transfer can result in you losing money, receiving less benefits and other negative outcomes due to the new pension provider not offering a true picture of their services. It’s also possible that you may have accidentally overlooked some information from the new provider.
Whenever you look at transferring your pension to another provider you need to ensure that you are fully informed and have researched the market and provider. There are many different schemes available so shopping around to find one that suits you is important.
Transferring pensions is not something that should be avoided, but you simply need to seek specialist independent pension advice first.
Contact Pensionlite on 01952 279 379 for more information on pension transfer
Tags: annuities, pension, pension performance, pension plans, pension release, pension transfer, review
Posted in Pension Transfer
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