These are employer sponsored schemes with trustees who are responsible for the schemes being run properly, legally and fairly. If your employer has a scheme, it is almost always in your interests to join. This is because your employer generally makes a contribution on your behalf, which is in effect a tax-efficient benefit.
Company pensions are set up by employers for their staff. They can be final salary schemes, also known as defined benefit schemes, or money purchase schemes, also known as defined contribution schemes. Either the employer or the employee, or both, can contribute to the scheme on a regular basis.
In a final salary scheme, when the employee retires, they receive a pension that is based upon the number of years service attained and the level of their salary. In a money purchase scheme, the monthly contributions are put into a fund that is earmarked for that particular employee. When they retire they will be given details of options to take varying levels of tax free cash and a choice from the many pension options that are now available under Pension Freedoms.
A pension is a long term investment. Your eventual income will depend on various factors, i.e. the size of your fund at retirement, future interest rates and tax legislation. The value of your investment and the income from it is not guaranteed. It can go down as well as up due to fluctuations in investment markets, and you may not get back the full amount invested.
Levels and bases of, and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.
HCR have a dedicated team of Independent Financial Advisers (IFA) who can ensure you are receiving the right financial advice and the highest standard of service.
For a free consultation to discuss your Company Pension Scheme requirements together with any other financial needsContact Us today
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