Personal Pension Plan FAQ

Personal Pension Plan FAQ

If you have no pensions provision, you should consider starting a personal pension plan. Whether you are self-employed, moving jobs frequently, or just don't want to take advantage of your employer's pension scheme, you should look at setting up a personal pension plan. Initially, you should find an independent pensions adviser, who will be able to answer any questions you may have, which could include some of the following:

What Is A Personal Pension Plan?

A personal pension plan or PPP is one that is often less restrictive than those offered by companies, and allow flexible contributions throughout the life of the fund. Your employer may offer you a personal pension plan, either through a company personal pension scheme or a group personal pension plan, or you can set up your own plan through an independent adviser. Personal pension plans are often advised for those who are self-employed, or who move jobs frequently.

How Much Can I Save In A Personal Pension Plan?

You can put as much money as you like into a personal pension plan. Most plans will have a minimum investment, but in addition to transferring money from your frozen pension into a PPP, you can make regular monthly contributions, which you can vary according to your income. If you want to, you can also make a lump sum contribution.

What Are The Benefits Of A Personal Pension Plan?

Flexibility is the key to personal pension plans. Not only can you vary the amount you contribute each month, but you have a wider choice over your retirement age. When you enter a company scheme, you are required to choose an age at which you want to retire. If you retire before that age, you will get reduced benefits. Personal pension plans let you choose to retire between 55 and 70 and there are no penalties for retiring earlier or later than the state retirement age.

Can I Transfer Money Into A Personal Pension Plan?

Yes. If you have a frozen company scheme, or any other funds that you want to invest into your personal pension plan, you can do so. In the case of your company scheme, you will need to get an up-to-date transfer value on your fund, to see whether it is worth paying the charges to transfer your pension. If it is, then you can transfer these funds into your personal pension. If you are considering this, talk to one of our panel of independent financial advisers.