ADVICE ON AUTO ENROLMENT PENSIONS IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
THE VALUE OF PENSIONS AND THE INCOME THEY PRODUCE CAN FALL AS WELL AS RISE. YOU MAY GET BACK LESS THAN YOU INVESTED.
TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.
Occupational Pensions
How occupational pension schemes work
Every payday, a percentage of the employee’s pay is deducted automatically from their salary or wages and invested in the scheme. The employer also contributes to the scheme on the employee’s behalf as does the government in the form of tax relief.
Two types of scheme
In a ‘defined contribution scheme’, the employee’s retirement income is based on the contributions made, whereas in a defined benefit scheme, the employee’s pension income is based on his or her salary and length of service with the employer. Most occupational pension schemes are defined contribution schemes.
What happens if the employer goes out of business?
Whether the scheme is managed by insurance companies or by the employer, the pension funds are not available to creditors of the employer, so employees’ pension pots should not be affected if the employer goes bust. If the scheme is a trust-based scheme, employees will still get their pensions, although not as much because the scheme’s running costs will be paid out of members’ pension pots rather than by the employer.
Auto Enrolment
Under ‘Automatic enrolment’ rules, any employer (with at least one member of staff) must automatically enrol every employee between the age of 22 and State Pension age and earning in excess of £10,000 a year (2018/19 tax year) into a ‘Workplace pension scheme’.
Contribution costs
The minimum contribution for employers is 2% of the employee’s earnings, rising to 3% on 6 April 2019. Employees are obliged to contribute at least 3% of their earnings before tax, rising to 5% on 6 April 2019.
ADVICE ON AUTO ENROLMENT PENSIONS IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
THE VALUE OF PENSIONS AND THE INCOME THEY PRODUCE CAN FALL AS WELL AS RISE. YOU MAY GET BACK LESS THAN YOU INVESTED.
TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.
Occupational Pensions
How occupational pension schemes work
Every payday, a percentage of the employee’s pay is deducted automatically from their salary or wages and invested in the scheme. The employer also contributes to the scheme on the employee’s behalf as does the government in the form of tax relief.
Two types of scheme
In a ‘defined contribution scheme’, the employee’s retirement income is based on the contributions made, whereas in a defined benefit scheme, the employee’s pension income is based on his or her salary and length of service with the employer. Most occupational pension schemes are defined contribution schemes.
What happens if the employer goes out of business?
Whether the scheme is managed by insurance companies or by the employer, the pension funds are not available to creditors of the employer, so employees’ pension pots should not be affected if the employer goes bust. If the scheme is a trust-based scheme, employees will still get their pensions, although not as much because the scheme’s running costs will be paid out of members’ pension pots rather than by the employer.
Auto Enrolment
Under ‘Automatic enrolment’ rules, any employer (with at least one member of staff) must automatically enrol every employee between the age of 22 and State Pension age and earning in excess of £10,000 a year (2018/19 tax year) into a ‘Workplace pension scheme’.
Contribution costs
The minimum contribution for employers is 2% of the employee’s earnings, rising to 3% on 6 April 2019. Employees are obliged to contribute at least 3% of their earnings before tax, rising to 5% on 6 April 2019.
It’s less risky than investing, but it offers limited growth.
The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
Mortgages are loans which are intended to help buyers purchase residential property. Your home may be repossessed if you do not keep up repayments on your mortgage.
Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die. Tax Planning is not regulated by the Financial Conduct Authority.
If you're over the age of 55, equity release offers you a way to use the value of your home to raise money. Equity Release will reduce the value of your estate and can affect your eligibility for mean
