A personal pension is an individual plan which you can pay into to save for retirement. The contributions paid in build up in a fund. The fund is then used to purchase benefits at your chosen retirement age.
This funds are usually with-profits or unit linked.
With-profits funds can consist of all asset classes such as equities, fixed interest, property and cash. The investment growth is governed by the bonuses added by the provider. Annual bonuses are added annually and the rate is dependent on how well the company’s investments have performed. Importantly, once a bonus has been added it cannot be taken away. A terminal bonus may also be added on retirement or on death, but this is not guaranteed.
Unit-linked funds allow the individual to invest in equities, fixed interest, property and cash. They may also allow access to ethical or socially responsible investments.
To find out more about Personal Pensions, please call us on 020 7993 2044 so we can evaluate your Pension options or alternatively complete the simple enquiry form on the top right hand side of this page