Workplace Pensions.



Posted on: 11th August 2014

The fact is that many of us are not saving for our retirement. It’s this fact that has led the Government to introduce changes to workplace pension. But Haven IFA is here to help.

What is a workplace pension?

Many employees will soon be put into a pension scheme and it’s important to understand just what this means. Put simply, the scheme will take money from employees, the taxman and the employer to invest in the future. Everyone who pays in will be entitled to some of that when they retire.

How much will I get?

Well this obviously depends on what you’ve been paid and for how long as well as how much you’ve earned over your entire career. It will also be based on investment performance.What a workplace pension does is produce an extremely tax-efficient way of saving. For most people the money you put in will be tax free.

Working for your future.

What’s fantastic about a workplace pension is that it’s not just you that contributes. Your employer will put in money as well. Read up on the scheme you are in and find out how much more you’ll get from extra contributions.

How and when can I claim my workplace pension?

There are some choices when it comes to claiming your workplace pension. You could take it all as a regular income if you’d like to. But others may want to take a lump sum – up to 25% – and then claim the rest as a regular income. When you claim the pension is entirely up to you.

If you decide to wait once you reach pensionable age, then you can still add to the pension if you choose.

Can the payments change?

Yes, depending on your earnings and also on any changes to what your employer has to pay as part of the Government minimum payment standards.

Are there any risks?

A few. The older you are then the less likely you’ll get back your money. But generally it’s a workplace pension is a positive thing.

For more information please contact our experts at Havinefa. We’re happy to help.