Pensions at Work

Many employers offer pensions through the work place payingvaluable contributions to employee’s retirement fund.  Benefits at retirement can either be –

Defined Benefits (often called Final Salary) – the pension you receive at retirement depends on your salary and your service with the company.  These types of schemes are normally associated with large employers and usually included additional benefits for example lump sum death benefit, dependent’s pensions and ill health early retirement.

Defined Contribution – with these schemes the pension at retirement will depend upon the contributions paid, the investment growth the fund achieves and interest rates at the time of taking benefits.
 

The arrangements above are often called ‘occupational schemes’ but not all the pensions offered to you in your job are occupational pensions. Your employer may offer a stakeholder pension or a personal pension through a group personal pension (GPP) arrangement. These pensions are not called ‘occupational pensions’ even though the employer usually contribute.

The Government is planning changes that will mean all employers will have to offer and contribute to a pension in the future and this is expected from 2012.  These will become know as Personal Accounts.

If you are an employer and want to know more about Personal Accounts or providing pensions for your employees please telephone or completed the contact enquiry form and an adviser will call you back.

What options do you have when you retire?