ADVICE FOR Choosing the right kind of

Pension

Everyone wants to know that when the time comes to retire, they’ll have a pot of money available that facilitates an enjoyable and comfortable lifestyle. However, being totally reliable on your State Pension may not be enough to achieve this, which is why we recommend looking into other forms of pensions as well.

We can help people of all ages in Hull and East Yorkshire to explore their pension options by referring you to Comran Taher of Truly Independent. Whether you’ve just started your first job, been in employment for many years or are within a stone’s throw of retirement already, it’s always a good time to have a chat about the best ways to save money for the future:

To get started, contact Mortgage Advice Firm today to be introduced to Comran Taher of Truly Independent and discover how to plan for retirement.
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Please note that neither Mortgage Advice Firm Ltd nor PRIMIS are responsible for the accuracy of the information provided, or the advice received by Truly Independent.

What is a pension?

A pension is a tax-efficient way of saving money on a regular basis whilst employed so that you have a stable income later in life. In simple terms, you continually add to your pension at a rate that suits your income and cash flow, and the government tops it up via tax relief. When the time arrives for you to retire, you have a pot of money to live off and can enjoy a comfortable lifestyle.

For tailored guidance on pension planning, get in touch and we can refer you to a third party.

What types of pensions are available?

Pensions fall into three categories: Workplace pension, private pension and State Pension. Workplace pensions are then divided into two main types:

Defined contribution, where you pay a percentage of your monthly income into your pension and your employer also contributes to it. The amount your employer pays depends on the individual company’s pension policy.
Defined benefit, commonly known as a final salary pension, where you receive a specified amount as an income when you reach retirement.

State Pension is the pension you will receive from the government once you reach state retirement age. The amount you receive depends on eligibility criteria and your National Insurance contributions.

Private pension (or personal pension) is a pension you set up yourself. There are three types of private pension in the form of a standard private pension, a stakeholder pension and a self-invested personal pension (SIPP).

For tailored guidance on pension planning, get in touch and we can refer you to a third party.

Will my pension provide me with enough income to do what I want during my retirement?

This is a very popular question with our clients, and rightly so. After all, the point of a pension isn’t to simply ensure you can pay your bills when you stop working but also enjoy your retirement to the full.

This question doesn’t come with a yes/no answer, as it’s entirely down to what you envisage your retirement to be like. Everybody has different goals for their retirement years, from simple activities such as spending time with family members to buying holiday homes, travelling the world, gifting money to grandchildren, and any number of goals and ambitions. In short, the more prepared you are, the more you will understand what it will take to build up a pension pot to suit your future lifestyle. This includes ensuring that your pension continually performs well and grows in line with your ever-changing plans.

For tailored guidance on pension planning, get in touch and we can refer you to a third party.

Is a pension a good idea?

It’s definitely a good idea to pay into a personal and/or workplace pension if you can. Once you retire and your salary reduces or stops entirely, a pension will provide you with a source of income. Providing you invest enough into your pension beforehand, you can then continue living the lifestyle you enjoy and make the most of your retirement.

For tailored guidance on pension planning, get in touch and we can refer you to a third party.

Can I lose my money?

Yes, it’s important that you understand that pensions are usually invested in stocks and shares. The value of stocks and shares can do down as well as up, which means that you could receive less than you put in over the years. This is why regular pension reviews are highly recommended, as they enable you to stay on track and fine-tune your pension strategy as and when required.

For tailored guidance on pension planning, get in touch and we can refer you to a third party.