A Good Pension Deal

The end of the final salary pension schemes, an increase in the number of self employed and an introduction of lower fee schemes  means Personal Pension Plans are jumping in popularity.

254,000 self invested pensions opened in 2007 have grown to more than 951,000 with assets of £115 billion up from £54 billion five years ago.

Personal Pensions are not as lucrative in benefits as ones with employer contributions but for those who regularly change jobs or higher rate tax payers who are willing to run there own they can be a worth while alternative.

With the various plans, each with different fees, potential returns and costs can seem confusing, the two main choices are stakeholder pensions set out by the Government and SIPP ( Self Investment Pension Plan) both offer tax relief, you pay money in before income tax is deducted.

Anyone under 75 can sign up to a stakeholder pension and invest up to £3600 each year, with SIPP you can invest far more with a greater choice of where you can invest you’ll need to keep a regular watch over your investments  or use an adviser to do so.

 

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