The basic state pension, for an individual, is currently £87.30 a week. To boost your income in retirement, you need to make your own arrangements. You can choose between a variety of schemes, many of which were originally devised to take advantage of tax breaks.
Reform of the tax regime, with the introduction of an annual limit on tax-favoured contributions from earnings (£225,000 in 2007/08), and a lifetime limit on tax-favoured savings (£1.6 million in 2007/08), has meant that many of the original restrictions have been sept away, and it is possible that the form of the schemes will change as a result.
It is possible to save a much higher level of income for retirement, and to save it simultaneously through a much wider range of schemes. You can use your occupational pension scheme (see Company pension schemes), a stakeholder scheme (see Stakeholder pensions), a personal pension, and one or more forms of top-up arrangement (see Executive pensions), all at the same time. In this briefing we look at personal pensions.
This briefing explains:
- Who should take out a personal pension.
- How much to pay in.
- How to choose a scheme.
- Where to go for advice.
