| Everyone needs to sort out a pension at some | | | | more frequently occupational schemes are |
| point in their life and the sooner you look into the | | | | proving less common. |
| process the easier it is to deal with. One of the | | | | There are two types of occupational pensions |
| first things that confuses people looking into | | | | schemes, the first is known as 'Final Salary' with |
| pensions is the different types on offer. | | | | this type the amount you receive from your |
| In this article we will explain the four main types | | | | pension is calculated from the earnings you were |
| which will hopefully help you feel more informed | | | | making prior to retirement. This is particularly |
| about which option is most suitable for your | | | | appealing if you've been promoted over a series |
| circumstances. | | | | of years to a senior position towards the end of |
| State Retirement Pension - this is the pension | | | | your career. |
| provided by the government, for some people | | | | The other option is known as 'Money Purchase' |
| the level of money provided by this pension may | | | | here your payments are based on the amount of |
| not be enough to live off, however almost | | | | money you actually contributed to the pension. I.e. |
| everyone is eligible for the scheme. | | | | if when you started the scheme you only made |
| You can begin to claim the pension at the age of | | | | small contributions you won't receive as larger a |
| 60 if you're a woman or at the age of 65 if | | | | payment when you claim the pension. |
| you're man. | | | | Personal Pension - some times people will want |
| The amount of money you received is based | | | | their pension scheme entirely separate from their |
| upon you National Insurance contributions, if | | | | employer, this is where personal pensions come in. |
| you've been out of work for significant periods of | | | | They are completely independent from your |
| time or under the NI threshold you might need to | | | | work place and are organised through commercial |
| seek further advice on your entitlement. | | | | organisations like banks and insurance companies. |
| Occupational Pension - in the past this was the | | | | However with personal schemes as the obligation |
| most common pension people would have in | | | | to pay falls entirely with you if you pay in little or |
| addition to their state pension though with | | | | not very often it will have a significant impact on |
| Stakeholder schemes they are becoming far less | | | | the amount you receive. Also their may be |
| common. | | | | penalties for changing the amount you would like |
| The pension scheme is set up by your employer | | | | to pay in, if for example if you begin working for |
| for all members of staff who want to become | | | | an employer who has an occupational scheme |
| part of the pension. However due to the changing | | | | that may incur a charge. |
| work climate where people move companies | | | | |