Private pension scheme run by insurance companies, unit trusts, building societies and banks. It aims to provide you with a pension at retirement plus other benefits. Unlike an occupational pension scheme, a personal pension plan need not be connected with a specific job.
Personal Pension Plans are designed to cater for pension planning for the self employed or employed in non-pensionable employment. Contributions made to a personal pension plan are exempt from tax at the persons highest rate of tax and the retirement age may be selected at any time from age 50 to age 75. Up to 25% of the pension fund on retirement may be taken as a tax-free cash sum and it is this tax-free sum which is used to repay the mortgage debt in the case of a Pension Mortgage.
A private pension which attracts tax relief. Understand the nature of high front-end loading charges, underperformance and the need to buy an annuity before you buy one of these.
An individual pension owned by the planholder.
an individual pension arrangement between a person and a financial company of their choosing
a tax efficient savings plan designed to provide a regular income in retirement
a way of making regular savings for your retirement
A private pension that attracts tax relief.
Such plans are suitable for those who are self employed or employed in non-pensionable employment. Contributions made to a personal pension plan are exempt from tax at the individual's highest rate. This means that a higher rate tax payer can receive 40% relief on contributions made. Retirement age may be between the ages of 50 to 75. Importantly up to 25% of the pension fund at retirement can be taken as a tax-free cash sum. It is a percentage of this tax-free cash sum which is used to repay a mortgage if a pension mortgage is the repayment vehicle.
1. A pension plan which produces income and possibly a tax-free lump sum on retirement or death. Personal pensions commenced in July 1988 and are designed to allow anyone who is either employed but not a member of an occupational pension scheme or self-employed to make provision for a pension in retirement. Personal pensions can be used to 'contract out' of the State Earnings Related Pension Scheme. Employers can normally contribute to the personal pension of an employee. Employees who are members of an occupational scheme cannot contribute to their own personal pension plan. 2. Personal pensions are a way of making your own pension provision if you are not a member of an employer's scheme. The return from a personal pension or part of it can be used to pay off the capital sum of a mortgage at the end of the mortgage term usually 25 years or, sometimes, earlier. They have the benefit of being tax efficient but to find out if they are suitable you should discuss with your financial adviser
A private pension scheme, mostly offered by insurance companies, that enjoys tax relief on contributions into it. The amount of tax relief increases the older you are. When you've reached the minimum retirement age - 55 for personal pensions - you can use the pension fund to buy an annuity and take up to 25 per cent of the fund as a tax-free lump sum. Personal pensions became notorious after they were mis-sold by unscrupulous salesmen and financial advisers who persuaded people in perfectly decent company pension schemes to transfer to PPPs, many of which weren't in any way suitable for people's needs. High front-end charges also meant that contributions were eaten up in the early years, so that investors wanting to transfer to another provider were quoted miniscule transfer values. The Financial Services Authority, the chief regulator, is still dealing with the compensatory implications of this mis-selling scandal. Having said all this, providing you know what the costs are, they can be useful products.
A fund created by an individual to buy a pension on retirement.
A regular savings scheme managed by a financial services company, such as a life assurance group, for an individual. Although you essentially set up the plan, your employer can also contribute to it. Most people will receive tax relief on contributions to this type of scheme, including non-tax payers.
An arrangement, often in the form of a policy from a life insurance company, under which individuals can make contributions without the need for employer contribution.
