New changeover arrangements designed to be simpler than the old system
The State Pension changed on 6 April 2016. If you reached State Pension age on or after that date, you’ll get the new State Pension under the new rules. The new State Pension is designed to be simpler than the old system, but there are some changeover arrangements which you need to know about if you’ve already made contributions under the old system.
Building up a pot of money to provide an income in retirement
With a defined contribution pension, you build up a pot of money that you can then use to provide an income in retirement. Unlike defined benefit schemes, which promise a specific income, the income you might get from a defined contribution scheme depends on factors including the amount you pay in, the fund’s investment performance and the choices you make at retirement.
Paying out a secure income for life which increases each year
A defined benefit pension scheme is one where the amount paid to you is set using a formula based on how many years you’ve worked for your employer and the salary you’ve earned, rather than the value of your investments. If you work or have worked for a large employer or in the public sector, you may have a defined benefit pension.
A personal pension is a type of defined contribution pension. You choose the provider and make arrangements for your contributions to be paid. If you haven’t got a workplace pension, getting a personal pension could be a good way of saving for retirement.
THE INFORMATION ON THIS SITE IS INTENDED ONLY FOR THE USE OF UK RESIDENTS. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Heritage Independent Mortgage Advisers Ltd is an appointed representative of In Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority.
Registered address: 4 Quarry Court, Lime Quarry Mews, Guildford Surrey GU1 2RD
Registered in England and Wales, Company number 8607926