Pensions in Lincoln: Why do I Need a Pension?

During your retirement you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you are guaranteed a large inheritance or windfall, then you need to provide yourself with a secure income for the rest of your life.

Although the government will provide those eligible with a small state pension, which is currently £115 per week, as this is only a very basic income it is advisable to make your own arrangements. One of the most common forms of saving for retirement is a pension, whether that is a workplace pension or a personal pension.

At Castlegate Financial Management, we offer advice on pensions in Lincoln and across the East Midlands. We work with our clients to ensure that they have the best possible pension plan in place that meets their needs and is regularly reviewed to ensure that changes in personal circumstances have been considered.

There are a variety of pension options available and the best one for your requirements will depend on a variety of factors such as your employment status. Whether you are employed, self-employed or a director should be considered when planning your pension to ensure you are choosing the right plan.

Auto Enrolment Pensions

Under a new law called ‘Automatic enrolment’, employers (with at least one member of staff) must automatically enrol every employee between the age of 22 and State Pension age that is earning in excess of £10,000 a year into a company-managed occupational pension scheme. Each 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.

Personal Pension Plans

A personal pension plan helps you save money for retirement and is available to any UK resident who is under 75 years of age. You choose the pension provider and make the arrangements for paying the contributions to the plan. You can start a personal pension even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension.

Executive Pension Plan

Executive Pension Plans (EPP) are tax-efficient savings plans set up by the company for key employees. The employer (and sometimes the employee) pays into the plan, to build a tax-efficient fund, which is used at retirement to provide tax free cash and a pension income. EPPs are normally established by company directors or other valued employees for their own benefit.

If you are looking for a financial advice on pensions in Lincoln or the surrounding areas, please do not hesitate to get in touch to talk about the most appropriate financial products for your personal circumstances.