Types of Pensions

Basic State Pension

  • Your National Insurance record is used to calculate your new State Pension. You’ll usually need 10 qualifying years to get any new State Pension.

  • The amount you get can be higher or lower depending on your National Insurance record. It will only be higher if you have over a certain amount of Additional State Pension.

  • You may have to pay tax on your State Pension.

Personal Pension

  • You may already have a personal pension, be self-employed or like the freedom to change jobs and manage your own pension plan. Then either maintaining or establishing a professionally managed personal pension may be the right choice.

  • Your funds are invested after attracting tax relief with an aim to significantly increase their value to provide a tax free lump sum and an income in retirement. Pensions can be taken from any time, after age 55.

  • Depending on your salary, pensions offer a unique opportunity to gain between 20% & 45% tax relief. Avidity Wealth Management can also advise on tax strategies for employees, company directors and those affected by the new pension rules coming in April 2015 for those over the age of 55.

  • Avidity Wealth Management can help you achieve the most tax efficient method of investing into a pension and taking the benefits from your plan(s).

Self-Invested Personal Pension (SIPP)

  • You may already have a personal pension, be self-employed or like the freedom to change jobs and manage your own pension

  • For greater control and flexibility, especially when working with our wealth management proposition a SIPP may prove to be an attractive option for managing your pension money.

  • Similar to a personal pension plan, but with a wider investment choice and less restrictions applied. This gives you a greater potential to achieve a greater growth rate on your funds and therefore optimise your income in retirement.

  • SIPPs are administratively more involved, however Avidity Wealth Management a vastly experienced in the arena and therefore would be able to discuss your SIPP and help manage it for you.

 

Risk Warning: Capital at risk, investments and the income from them can fall as well as rise