A Guide to Workplace Pensions

By April 11, 2017Essex
A Guide to Workplace Pensions

A workplace pension is a way of saving for your retirement that is arranged by your employers, these may be called occupational pensions, works pensions, company pensions or work-based pensions. If you join a workplace pension, a percentage of your pay is automatically contributed to your pension scheme every payday and in most cases your employer will also make monthly contributions to your pension scheme.

The amount of personal and employer contribution will vary depending on the rules of your pension scheme, but your employer will provide full details on the rules before you enter into a workplace pension scheme. Before making the decision to join a pension scheme it is good practice to seek pension advice from an independent financial adviser to ensure you are making an informed decision and making the best decision based on your circumstances.

If you are looking for independent pension advice in Essex, we can help you find the right pension adviser to help you plan for your future in these uncertain times and provide a good level of income for your retirement.

The financial advisers we recommend are experienced in retirement and pension planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Essex.

Different types of workplace pensions

While the names may vary depending on the provider, there are three main categories of workplace pensions, they are:

Defined benefit pension schemes

These types of pensions provide retirement benefits based on your earnings and length of time you have been a member of the scheme. Your earnings may be defined differently to the amount shown on your payslip depending on your pension scheme. Your employer will provide full details of the scheme, it is good practice to seek financial advice before
joining any pension scheme.

Defined contribution pension schemes

These pension schemes take the contributions made by you and/or your employer and invests them into a range of investments, depending on your scheme you may be offered a choice about these investments. The benefits you receive at retirement depend on the level of contributions made, how long they have been invested and how the investments have performed.

Cash balance plans

Cash balance plans include parts of both defined benefit and defined contribution pension schemes. A cash balance plan may provide you with an income in retirement or a tax-free cash lump sum and an income.

What if you change jobs?

If you change your job your workplace pension still belongs to you, if you no longer contribute to the scheme the money will remain invested and you will receive pensions payments when you reach the pension age as set out in the scheme.

If you already have a workplace pension with an old employer you will still be able to start a new workplace scheme in your new job and may be able to carry on making contributions to your old pension or combine the new and old pension schemes. It is recommended that you seek pension advice from an independent financial adviser before making any changes to your pensions.

At PensionAdvice.org we can help you find a registered financial adviser for pension advice in Essex. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances and meets your financial and retirement objectives.


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