Pensions

A large proportion of people have one or more frozen/preserved pension plans which more often than not have been neglected and people don’t generally know what to do with them. Money Matters has invested in sophisticated computer software which enables us to analyse existing pension schemes and provide comprehensive reports to help give some direction and clarity to your retirement planning.

Please get in touch to obtain your free guide to pensions.

Common Myths/Misconceptions

I’m too young to worry about starting a pension plan

The funny thing is the younger you start planning for retirement the less it actually costs you. If you pay over a longer term you don’t have to pay as much. Many older people who have left retirement planning a little late find that because they have left it late they have to pay substantial amounts of their disposable income to obtain a reasonable pension and this can put them off altogether
 

I don’t need to worry the state will look after me

The state pension will only ever provide a basic amount of income which is usually a lot less than you were earning before retirement which is why a lot of over 65’s have part time jobs…to make ends meet.
 

My husband/wife has a pension so I’ll be OK

This is true initially but upon death pension benefits are usually halved!
 

Pension plans are not as good as they used to be because of the stock market performance

A pension fund is only as good as the investment fund it is in and there are plenty of funds to choose from that are making very good returns, it is our job to select the most appropriate fund for you and advise when it needs to be changed
 

I contracted out of SERPS so I won’t get a state pension

Contracting out of SERPS does not effect your entitlement to the basic state pension; SERPS was an additional pension fund being paid for out of National Insurance contributions
 

FAQ’s

Q. How much will a pension cost me?  

The amount that each person should pay depends on how old they are and how much income they want at retirement. Money Matters can provide forecasts that will help you decide how much you need to pay

Q. How do I know which pension company is the best one for me?

Money Matters will compare the whole of the market to find the most suitable pension provider for you and provide a comprehensive report with reasons for our recommendation

Q. What is pension tax relief?

For a basic rate tax payer you pay 80% of the premium and the pension company claim the other 20% from HMRC. This a government incentive to encourage pension saving

Q. What is an annuity?

An annuity is the name given to the product that you can buy with your pension fund at retirement and it is the product that pays your income to you

Q. Are all pensions the same?

No, there are several different kinds of pension, Stakeholder, Personal Pension plan, Group Personal Pension Plans, Defined benefit schemes, Self Invested Pension Plans some of which will be applicable to you and some will not, we can explain all of the various schemes  

Q. Can I have more than one pension?

Yes as long as you stay within the maximum permitted for your particular circumstances.
 
Q. What happens to my pension plan if I die?

In most cases your entire accumulated pension fund is paid to your next of kin tax free

Q. Can I have a joint pension?

No, pensions are individual arrangements although when you come to draw the pension you can elect to have a joint annuity.

Q. How do I know how my pension is doing?

You will get an annual statement from the insurance company and in addition to this Money Matters provides real time valuations on our client website.

Q. W hat is the minimum age that I can draw my pension?

Normally age 55

Q. What is income drawdown?

Income drawdown is where you leave your pension fund invested and draw down income from it instead of buying an annuity; this method has many benefits but requires specialist advice which Money Matters can provide upon request.
 
Q. Will I get a better pension if I have a medical condition?

Yes, when it comes to buying an annuity there are companies who specialise in providing ill health of impaired life annuities usually because life expectancy is reduced

Q. Can I use my pension fund to buy my business premises?

Yes, via a Self Invested Pension Plan (SIPP). Please request further information if your pension fund is worth in excess of £50,000