Pumping up your pension
Article Abstract:
Only a tenth of United Kingdom employees covered by company pension schemes retire with two thirds of their final salary. There are a number of ways in which employees can increase their pension. They can take out additional voluntary contribution schemes (AVCs), or free-standing additional voluntary contribution schemes (FSAVCs). FSAVCs may offer more choice in terms of investment vehicles, and may also be more expensive. Employees may also be able to use a salary sacrifice system, which does have disadvantages such as lowering redundancy payments.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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That Furbs feeling
Article Abstract:
United Kingdom Funded Unapproved Retirement Benefit Schemes (Furbs) are of interest to higher savers and earners who have been affected by changes in the way that savings are taxed. Furbs became important after an earnings cap was introduced in 1989, restricting pension entitlement for new members of schemes. Furbs offer flexibility and allow for benefits to be taken in the form of lump sums. Furbs may become increasingly important after Individual Savings Accounts are introduced, since these may be too inflexible for some savers.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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