Pensions & Retirement Planning
Pensions are of course used to provide you with sufficient money to live comfortably once you retire from work. There are many different ‘tools’ used to save fore retirement and the taxation and investment elements of pensions can appear baffling. Financial Advisers specialise in explaining, recommending and monitoring pensions for people. There are currently four sources of pension to fund for your retirement:
The basic state pension for people who've paid National Insurance contributions while at work or have been credited with contributions.
Additional state pension - This is now the state second pension. Before 6 April 2002, you built up SERPS (state earnings related pension scheme) pension. Both are available to employees earning more than a given amount. Many people who are not working because they are caring for young children or, say, an elderly relative or because of disability or long-term illness are also able to build up state second pension (but not SERPS). Additional state pension is not available in respect of self-employment income.