The Basic State Pension is based on the National Insurance record of the individual. Each year that National Insurance was paid is called a qualifying year.

The Basic State Pension is based on the National Insurance record of the individual. Each year that National Insurance was paid is called a qualifying year.

A geriatric life with hassles is not what we ask for in the sunset of our career.  A serene, cozy and delightful life is what we look forward to at old age.  This explains why, at old age, we have to free ourselves of worries, particularly those related to finance.  Under these circumstances, is pension not the right solution?

A pension gives a chance to retired people pretty much to live a life of reasonable comfort.  Pensions are of several types.

One such type is the Basic State Retirement Pension, which serves women who reach the age of 60 and men attaining 65.  The sum contributed towards National Insurance forms the basis for calculating the amount obtained for a state pension.  Those who had contributed for 90% of their employed career are eligible for full basic state pension.

A second type of pension is the Personal Pension, which is a contract between a pension provider and the individual, to have savings on retirement.  The pension provider invests this sum for the client, and its value will augment with time.  A personal pension is an ideal way of complementing the income from your basic state pension.

There are in addition, occupational pension schemes available, and they fall under the categories; the contributory or the non-contributory.  The options are either that the employer makes full payment for the occupational pension or the employee opts for a contribution in addition to employer’s payment if he so prefers.  Employees who are not satisfied with the contributions from their occupational pension scheme can supplement their contribution to enhance their pension benefits.  Such contributions go by the name, Additional Voluntary Contributions or AVCs.  Some petty companies have no pension schemes, thus employees prefer a personal pension instead.

If your spouse or civil partner is over State Pension age when you die, they should contact the Pension Service to check what they can claim.

If your spouse or civil partner is over State Pension age when you die, they should contact the Pension Service to check what they can claim.

There is still the stake holder pension.  This is a kind of personal pension, which is more sinuous when compared to the personal pension.  Those saving for a personal pension are to pay several types of fees, like set-up fees, but stakeholder pension provides for lesser or even nil initial charges.  Using the services of an independent financial advisor could offer you the ideal method of obtaining a stakeholder pension.  Moreover, because this type of pension comes with much lower charges, the commission fees for the IFA may hold out a lesser figure; this makes the stakeholder pension a better option.

Those who are self-employed also make ideal members of a stakeholder pension scheme, which focuses on people with reasonable earnings.  The stakeholder scheme can help to supplement the occupational pension scheme, if the employee’s earning is lower than £30,000.  Persons can go for multiple stakeholder pension schemes, if they so want.

Readers, do you have a UK pension?  Where did you work to obtain your pension, and are you happy with what you’ve received for you worktime?