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Compare Pension Plans With Money Pug
- It is never too early, or to late, to start thinking about the future. No matter what age you are, there will be a private pension plan or SIPPS (self-investment personal pension scheme) to suit you. But choosing the right pension plan can sometimes seem like a complicated business. Money Pug helps by taking all the mystery out of the pensions on the market, and by providing a list of quotes to suit your circumstances, so you can find the best pension option for you. Make sure you are covered for your retirement and will be taken care of in the years to come by putting the right pension plan in place.
Should I Get A Workplace Pension?
- State pensions currently offer little more than £150 a week. So it is a good idea, no matter what age you are, to consider building up additional pension funds. It is best to get started towards building an income for your retirement as soon as possible.
The best place to start, if you are an employee, is usually with your workplace pension. Opting into these is usually a good idea because you will benefit from employer contributions as well as what you put in yourself.
Of course, this is usually not an option for the self-employed, those who work abroad, or those who do not meet the minimum earning requirements for a workplace pension. In each of these cases, a private pension gives you some pension options. Also, even if you do have a workplace pension, you pay like to consider boosting your investment in the future with an additional private pension.
What Investments Can I Hold in A SIPPS?
Some of the investments that you can choose to hold in a SIPPS include:
What Tax Relief Will I Get On My Pension Plan?
You can get tax relief on pension contributions that are worth up to 100% of your annual earnings. If you receive tax relief for anything over this limit, the HMRC can ask you to repay this. The government will top up your investment at the rate at which you pay income tax up to the limit amount. In addition to the annual earnings limit, there is also an annual allowance for contributions that receive tax relief. If your contributions go over this annual allowance, you’ll pay tax on the extra. You can, however, top up this allowance with unused allowance from the last three years. It is also worth noting that pension contributions can grow free from income tax and capital gains tax liability.
What Should I Consider When Choosing A Pension Plan?
In addition to deciding whether to go for a private pension of SIPPS, you should also carefully consider all the fees and features associated with the plan in question before you go ahead.
All pension schemes will have a variety of charges associated with investing and managing your funds. Fees and charges for private pensions and SIPPS can include:
- This fee is sometimes levied at the outset, when you take out your pension and get it set up in the first place. Not all pension firms make this charge, so if the quote you are considering does include this, make sure you shop around to see if you can get a better deal elsewhere and make sure you take the set up charge, if there is one, into consideration when comparing your options.
Annual Management Charges
Most pensions have an annual management charge (AMC) that covers administrative and investment costs. This will also vary between different providers, so again, be sure to take this cost into consideration when choosing your pension plan. Be wary – if you see a low AMC make sure that this is not compensated for with high set up or transfer fees.
Sometimes, exit penalties might be so steep that they outweigh any benefits of transferring your pension, so be wary and if you are switching pension provider, or may want to consider doing so in the future, you will definitely need to take this into account.
Fees For SIPPS
SIPPS can have other attendant fees and charges to consider. You may have to pay for the various transactions that you will have to make when investing. There is usually a dealing charge to pay when you buy or sell investments, in addition to the charges mentioned above.
It is always a good idea to look to the future and to make sure that you are prepared. Allow Money Pug to help you put the right pension plan in place. Compare today to see what pension deals might be available for you, and start the journey (or continue the journey) towards saving for your old age.
- When you are looking for a pension plan, there are two main options to choose from – regular private or personal pensions and SIPPS (Self-investment personal pension schemes).
Private pensions are an alternative, or an addition to workplace pensions that offer tax advantages to saving for your retirement. Private pensions are administered by a pension fund manager, who picks the investments.
SIPPS are similar to private pensions but are not managed by a fund manager but rather allow you to choose your own investments. You can choose what you put your money into while saving for your retirement. SIPPS are a tax-efficient wrapper similar to a stocks and shares ISA, which you can place your chosen investments inside. The government automatically adds tax relief at the rate at which you pay income tax. SIPPS are generally not a good idea for inexperienced investors and it is a good idea to speak with a financial advisor before you go ahead and choose one.