PensionsIf you’re not in a job where pensions come as part of the package – like teaching or the police – deciding how to make provisions that will allow you to enjoy your retirement to the fullest can seem very complicated. Changes to Pension legislation have been numerous over the past few years. Let’s take a look at some of them –
- All businesses, both large and small, are being asked to set up workplace pensions and both employers and employees will pay contributions to the chosen scheme (auto-enrolment).
- At the end of the saving period the pension will no longer have to be placed into a poor value annuity.
- From April 2015, people have been free to draw their pension as and when they wish. Pension companies have responded with Flexible Drawdown Contracts
- The amount individuals can put into personal pensions has been capped to either full years income up to £40000
- And the latest comes in for people under the age of 40 as Lifetime Individual Savings Account with a larger injection from the government than a personal pension, coming into play April 2017