I'm thinking about pension options. In order to make the best decision I would like to know what is available. Please explain what types of pension exist and it would be great to provide some pension comparisons. It would mean so much to me if you could help me to make the best choice because I'm not very good with finances. Thank you in advance!
Making pension plans is not always easy. I understand that you want to explore all options there are. I'll try to explain pension types and who should use them. Basic pension types are state, personal and company pension. To get a basic state pension you qualify by having enough earnings during a tax year and it's claimed when you are 65 (male) or 60 (female). Additional state pension is available for full time employees who made certain contributions. Personal pension are provided by some financial institutions like banks, insurance companies etc. It's more like an investment and there is a lower age limit when you can claim it. In that case you decide how much to save which gives you more flexibility. There is also an advantage of tax relief. Subtype of a personal pension is a stakeholder pension which is usually offered to self-employers and employees without company pension. Companies offer their pension schemes to their employees and you pay contributions with your wage. Sometimes a group pension scheme is offered to lower the cost of the scheme. Now decide where you fit and make a choice.
