Personal Pensions

A Personal Pension is, as its name suggests, a pension that you arrange for you! They have been hugely popular for many years because of the favourable tax treatment that they receive. The tax relief on your payments into the pension is the most popular aspect as for every £78 you invest, the government adds £22 (ie your basic rate tax). Even more is added if you are a higher rate tax payer, although this must be claimed through your tax coding.

Personal Pension

Personal Pension used to be rigid and inflexible but have undergone major changes over the last few years. This has added excellent flexibility to match the change in working patterns.

Personal Pensions usually have a range of investment mediums to suit the investment profiles of the vast majority of client's attitudes to investment risk. Most plans will allow changes to the chosen funds and some will carry out automatic "lifestyle" changes within their pension plans.

Stakeholder pensions

Stakeholder pensions have been unkindly referred to as "the poor man's pension". This is by no means true. They are personal pensions which have their annual charge capped at 1.5% of the fund for the first 10 years, they then reduce to 1% of the fund thereafter. This "cheapness" usually comes at a price in the form of restricted investment choices

Ring us on 0121 602 1602 to arrange a meeting to discover which is best for you