Self-employed people or people who are not in an occupational pension scheme can take out these pensions.
Established under the Social Security Act 1986, personal pensions allow individuals to make their own provision for an income in retirement. Tax relief is allowable on the contributions at the investor's highest marginal tax rate. Investments grow free of all taxes to create a fund to be used at retirement to purchase an annuity. Up to 25% of the fund may be taken, as tax-free cash and the balance must be used to purchase an annuity. Alternatively, from July 1995 the balance may be used in an income withdrawal annuity arrangement.
A structured personal savings and investment plan to provide for your financial needs after you retire. You can use some or all of the proceeds from a personal pension to pay off an interest-only mortgage. You will need to arrange life assurance separately to a personal pension.
If you are self-employed or not a member of an employer's company scheme, you may opt for a personal pension plan. back
A plan which you take out to produce income and maybe a tax-free lump sum when you retire or upon death. It replaced the old retirement annuity in July 1988 and you can use it to contract out of SERPS. Employers can also normally contribute to a personal pension. You can also normally invest a transfer value from a previous pension scheme into it.
an option if you are self-employed or your employer does notrun a company scheme
a privately funded pension plan
a stock market based investment that benefits from tax relief and tax free growth
a tax-efficient savings plan that enables you to save for retirement
a way of making regular savings for your retirement
Personal pensions are also known as private pensions or PPPs. They are provided by pensions companies and are intended to give you a second pension to help you have a secure retirement. If you cannot, or do not, pay into an occupational pension scheme, you may want to think about a personal pension. You cannot usually pay into occupational pension and personal pension schemes at the same time. Benefits from a PPP do not affect the basic Retirement Pension.
A tax-efficient way to accumulate savings for retirement. Contributions into a pension fund receive tax relief and a proportion of the eventual payout can be taken tax free from age 50. The remainder must be used (either on retirement or by age 75) to buy an annuity to provide income for the rest of the investor's life. Personal pensions can be either individual arrangements, or provided by an employer (known as Group Personal Pensions) although unlike an occupational pension there is no requirement for the employer to contribute.
A pension plan taken out by an Individual in his or her own name. The plan will offer certain tax advantages and the monies invested will be allowed toi build up to purchase an Annuity at the retirement date. The Annuity will then provide a regular income to support the person throughout their retirement.
Pensions plan which produces income and possibly a tax-free lump sum on retirement or death. Personal pensions commenced in July 1988 and are designed to allow anyone who is either employed but not a member of an occupational pension scheme or self-employed to make provision for a pension in retirement. Personal pensions can be used to 'contract out' of the State Earnings Related Pension Scheme. Employers can normally contribute to the personal pension of an employee. Employees who are members of an occupational scheme cannot contribute to their own personal pension plan.
This is a pension plan used to save for an income in retirement. In some circumstances it will also pay a tax free lump sum on retirement. Some lenders are prepared to grant mortgages to borrowers wishing to use their lump sum to repay their interest only mortgage.
A pension which is provided through a contract between an individual and the pension provider. The pension produced will be based on the level of contributions, investment returns and annuity rates. A personal pension can either be employer provided or purchased individually.
This allows self-employed and employed individuals who are not members of a company occupational pension scheme to set aside money on either a regular or ad hoc basis for retirement. They were established in July 1988.
This is a structured savings and investment plan to provide for your financial needs after you retire. You can use some or all of the proceed from a personal pension to pay of an interest only mortgage.
A pension plan, not tied to a particular employment, that you can keep going even if you change job. You might have set up the plan yourself direct with a pension provider or it could have been arranged through your workplace. Some personal pensions are Stakeholder schemes.
An arrangement between an individual and a pensions provider; for example, an insurance company.
This is someone's personal pension arrangement . It can also mean a retirement annuity set up before July 1988.
Established under the Social Security Act 1986, personal pensions allow individuals to make their own provision for an income in retirement. Tax relief is allowable on the contributions at the investor's highest marginal tax rate. Investments grow free of all taxes to create a fund to be used at retirement to purchase an annuity. Up to 25% of the fund may be taken as tax free cash and the balance must be used to purchase an annuity. Poor Credit This term is used to describe credit problems due to an adverse credit history. Examples of poor credit are CCJ's, mortgage arrears and other debt problems. These lead to a poor credit rating.
