Personal Pensions

A Personal Pension is designed to offer a taxable income in retirement with the option of a tax-free cash lump sum.  They are available to any United Kingdom resident who is under 75 years of age.  When you contribute to a Personal Pension plan, your money is invested and a fund is built up.  The amount of pension payable on retirement depends upon:

• the amount of money you paid into the scheme
• the performance of the investment fund
• the charges payable under the plan
• the ‘annuity rate’ at the date of retirement

The annuity rate is the factor used to convert the pension fund into a pension.

When can I draw on my pension benefits?

The concept of a normal retirement age has disappeared, as have constraints on drawing occupational benefits while still employed.  The minimum age for drawing benefits is 55.

What are my options at retirement?

For advice with regard to setting up or maintaining your personal pension and to ensure you remain on track to hit your retirement goals, please contact us.

Warnings!

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.