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 or from the age of 57 commencing April 2028.

  • 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, self-employed, contractors  and company directors.

  • 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.

 

Contact us for a Free Initial Pension Review

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

Tax treatment varies according to individual circumstance and is subject to change.