Vested interest of 20%
Article Abstract:
Older investors in the UK can invest in pension plans then draw income straight away. They are able to do this if they have not used their tax relief for personal pensions. The yield is boosted by tax relief on the lump sum invested. An investment of 10,000 pounds sterling brings 2,500 pounds tax relief and an annuity can be bought at a good rate in 1995. The income on the annuity is subject to tax, and investors should assess charges imposed by the provider. The lump sum is also lost if it is used to obtain an annuity.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Keeping company with your pension
Article Abstract:
UK company pension schemes tend to offer better value for investors than personal schemes due to contributions made by employers. Final salary schemes pay pensions related to earnings levels while money-purchase schemes offer no such guarantee. Employers have to provide additional contributions to meet guarantees on final salary schemes if the pension fund is insufficient. Fund performance determines the pension paid from money-purchase schemes, but they still attract payments by employers.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Don't mention my pension
Article Abstract:
Saving through a pension is tax efficient and the four main types are employer based schemes, personal pension plans and two types of stat pension. Both the basic state old age pension and Serps pension are taxed in line with inflation and will decline over coming years. Employer based schemes are often contracted out of Serps and contributions attract tax relief.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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