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Pensions Guide for Personal Pensions

It is now unlikely that the state pension will be enough to keep you living comfortably once you retire. It provides only basic support, and the government itself is eager to encourage people to conserve as much as they can to supplement their state pension and give themselves a comfortable income in retirement.

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Pensions Guide for Personal Pensions

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  1. Pensions Guide for Personal Pensions It is now unlikely that the state pension will be enough to keep you living comfortably once you retire. It provides only basic support, and the government itself is eager to encourage people to conserve as much as they can to supplement their state pension and give themselves a comfortable income in retirement. Coupled with better health in the overall population - meaning longer life expectancies - and dwindling stock market returns during the last ten years or so, the so-called 'pension crisis' is a call to action for people to plan their own finances carefully and place an increasing number of cash aside to guarantee a secure and safe future for themselves. This article is the second of two guides analyzing the principles of mis sold sipps. The first guide concentrates on state pension provision, although this one outlines a number of the chances for making private pension arrangements. They're intended for information only and do not constitute financial advice. It is recommended that you talk to a financial advisor for professional advice on planning your finances for retirement. Saving for the future There are lots of ways in which you'll be able to save for the near - savings accounts, stocks and shares and property investment, for instance. However, all of them are subject to tax. Pension schemes are way more tax-efficient as tax relief is provided on contributions made and the earnings they provide throughout retirement is tax-free. This is why pensions are a frequent way of saving for retirement. There are two chief types of personal pensions - final salary and money purchase. The first could only be supplied through occupational schemes, but the next can be purchased privately on an individual basis. Last salary Final salary schemes, also known as defined benefit schemes, offer a guaranteed income based on a percentage of salary earned during your final year of job as well as length of service with the company. It is possible to retire on up to two thirds of your final salary.

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