Getting it right from the start – choose the best pension for you
Your personal pension may well be the largest single investment of your life, and choosing the best pension for you at the outset is a crucial investment decision. Your pension investment is a journey, not a destination - and quality pension advice is essential, to be sure you have the best pension scheme.
Of course, the major attraction of any pension scheme is tax relief on your contributions. Savings into a stakeholder or personal pension attract tax relief from government equivalent to the rate of tax that is applied to your wage. If you pay tax at the basic rate of 20%, every £80 you save into your personal pension will attract £20 in tax relief. If you pay the higher rate of tax at 40%, you will receive 40% of tax relief on your stakeholder pension, with half going into the pension and half reclaimed via your tax return, and paid directly to you.
Let us tell you how this tax payback makes a pension the perfect way to save! Click here now for Pensions Advice or call 0800 678 5929
Best pension for you – Types of pension scheme
There are three main types of personal pension scheme, one of which is sure to be the best pension scheme for you.
Best pension for you – Stakeholder Pensions
Stakeholder Pensions offer a standard investment option in a range of investment funds. The no-frills structure of stakeholder pensions make them the best pension option for the ordinary investor.
The stakeholder pension is also the most economical of private pension schemes. There are many stakeholder pensions available. At Principle First we are independent financial advisers, not tied to any pensions provider. This means we have a whole of market approach to look at the best pension schemes available, before selecting the best pension for you.
When setting up any personal pension, choosing the investment funds you will invest in, from the range available in the pension, is another important element of ensuring that the pension is the best pension to suit your preferred level of risk. We will do a risk analysis to assess your preferences, and analyse the funds in your pension to be certain that they fit. This makes it doubly certain that you really are getting the best pension scheme for you.
Best pension for you – Children’s Stakeholder Pensions
In recent years it has been possible, for the first time, to set up pensions for children. Money you pay for your child into a simple child stakeholder pension can grow over an extremely long time horizon, to provide a large pension pot for your children, when they reach retirement age. The gift you are giving them is freedom from worry, during their working life, as they know they already have a decent income put away for retirement. From this point of view, the best pension you buy in your life can be the pension you set up for your child!
Let us tell you about the best pension for your child – or for you! Click here now for Pensions Advice or call 0800 678 5929
Best pension for you - Personal Pension
The personal or private pension is a slightly more complex product which usually offers access to a wider range of underlying investments than the stakeholder model, and at a higher fee. If you wish to have more choice in your pensions investment, the personal pension may be the best pension for you.
Best pension for you – Self Invested Personal Pensions (SIPPs)
If you are interested in investing in a wider range of asset classes and funds through your pension, then the SIPPs pension is likely to be the best pension to choose.
A SIPP offers greater flexibility than other pension models described here, but at a higher cost.
Each of these types of pension scheme are suited to different long-term saving needs. Principle First has access to all the best pension schemes, and can explain your options to ensure you choose the best pension for you.
