State Pensions State Pensions - The basic amount through this pension received is dependant on the number of years you have paid or been treated as paying National Insurance contributions. These are known as 'qualifying years'.

It is possible to be credited with NI contributions under certain circumstances when you are unable to do paid work. Many people also decide to invest in a private pension to run alongside their state one.

You may find that you can buy into an Occupational Pension. Some employers will run this scheme and it is also known as a works pension, company pension or superannuation. For most schemes, the amount that you will get usually depends upon how long you have been a member of your pension scheme and your earnings on retirement.


Stakeholder Pensions There are conditions to this product that relate to the maximum amount that the Pension Company can charge for the scheme. There are conditions on the minimum level of contributions they have to accept as well as the abolition of a fixed frequency for your contributions. The decision regarding the choice of investment funds is a mater for the pension company.

Many employers choose to contribute to a S P Plan as part of an overall package but they are not legally obliged to do so. Employers with five or more staff, who do not have a good value company pension scheme in place for their staff have to offer relevant employees access to a stakeholder pension scheme through the workplace. You can opt to take your benefits at any time from fifty onwards. You do not have to cease employment to draw benefits from your plan. Income tax relief at a rate of 22% is available on any contributions you make If you die your next of kin would benefit and there maybe no inheritence tax to pay.

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