Private Pension Advice
If you’re thinking of starting a new Private Pension or already have an existing one (or more) then call Scottish Pensions for a free health check to ensure you plan is on track and will meet your expectations for your retirement.
Unlike an Employers Pension Scheme a Private Pension allows you to choose who your providers is, how and to some extent where you would like your money invested and how much you want to pay in. A Private Pension allows you have the freedom to pay in when times are good or to reduce your contributions when there is less money available.
There are several kinds of Private Pensions:
- A Standard Private Pension,
- Stakeholder Pension
- Self Invested Private Pensions (SIPPs)
The type of pension you choose, or have, is largely dependent on your attitude to risk and amount you can afford to put away.
A Private Pension is ideal for people who are self-employed or for those that don’t belong to company pension scheme. What makes a Private Pension unique is that it allows you to vary your contributions – such as paying in more when there is more available cash or to take a ‘contributions holiday’ – when there is less available money.
Benefits of Private Pension?
As of April 2015 Private Pensions holders over the age of 55 will be allowed to access their whole pension pot. The first 25% of your pension savings can be withdrawn as a tax-free lump sum, which may be ideal for those who have a mortgage or debt which they wish to clear. The balance can also be withdrawn too, however, this would of reduce your retirement income later in life and be subject to tax.
The government also encourages us to save for our retirement by boosting our contributions by offering tax relief. For instance, if you are a basic-rate tax payer and you wish to contribute £1000 to your Private Pension, the real costs to you is £780 with the government topping up your contributions by £220.
Are there any drawbacks to Private Pensions?
- Private Pensions are completely self-funded.
- Occasional Private Pensions have restricted investment options, however a SIPP (Self Invested Private Pension) does give you a broader range.
To help you make the right pension choices, whether you already have a Private Pension that needs reviewed or are considering starting a pension, our panel of Independent Financial Advisers work across the length and breadth of the Scotland advising and guiding individuals as to which Pension Plan would best match your circumstances.
For a Free Consultation just complete our short Enquiry Form or call 0141 465 1909. Lines are open – Monday to Friday: 8.30am – 7pm.
Branches in Glasgow, Edinburgh, Dundee, Aberdeen, Inverness, Perth, Oban and Stirling.