Last November NEST announced a surprise cut to the charges it will apply. NEST said that it would initially apply a 0.3 per cent annual management charge and a contribution charge of 1.8 per cent, after the former Labour government had indicated that the contribution charge would be 2 per cent.

The new employer duties under the government’s workplace pension reforms will be introduced over a four year period from 1 October 2012. This staggered introduction of these duties is known as ‘staging’. Broadly speaking, the new duties will apply to the largest employers first with some of the smallest employers not being affected until 2016. As part of the new duties firms will be enrolled into the National Employment Savings Trust (NEST).

The former government established NEST as part of pension reforms aimed at tackling a lack of adequate pension savings among low- and middle-income UK workers. The NEST’s investment strategy will be low-risk and there may be a possibility that, after five years, savers will be able to move their money out of the NEST into other pension schemes.

The reforms include the stipulation that from 2012 employers either pay a minimum contribution of 3 per cent into the scheme or automatically enroll workers in existing pension vehicles. NEST will launch its scheme for voluntary enrolment in the second quarter of this year.
The new two-part charge by NEST will work as follows: if a member has a fund of £10,000, they will pay £30, due to the 0.3 per cent annual management charge; if that same member makes a monthly contribution of £100, including tax relief, they will pay £1.80 on the sum, due to the 1.8 per cent contribution charge.

NEST also said that in the long term, once the costs of establishing the scheme had been met, the contribution charge could fall away, leaving a flat annual management charge of 0.3 per cent. ν

A pension is a long term investment. The fund value may fluctuate and can go down. NEST schemes are regulated by the Pensions Regulator.

As retirement hits the headlines in July with the Government making announcements on annuitisation and the default retirement age – latest figures from unbiased.co.uk, the professional advice website, reveal 38% of consumers sought retirement planning advice when using unbiased.co.uk’s ‘find an IFA’ service. Retirement planning continues to remain the number one advice driver when searching for an Independent Financial Adviser (IFA), with a 2% rise in searches month on month.

Kevin Stelfox, Sales Director at independent financial adviser Retirement Solutions commented: “Consumers should always seek independent financial advice for any financial product they intend to purchase, the difference between the best and worst products can be significant. Pension advice is one particular area of retirement planning that cries out for independent advice as the pension fund can be eaten away with excessive charges”

Many UK companies are closing their final salary pension schemes and leaving their employees to save in money purchase schemes that depend upon fund performance for the final pension. This means it is so important to take independent pension advice.

If you live in or around Leeds and you are looking for an Independent Financial Adviser for pension advice in Birmingham then we recommend a national firm of retirement specialists, Retirement Solutions.

The UK State Pension is a good starting point for your retirement needs but if you want a comfortable retirement then you need to save for yourself in a pension scheme. Independent financial advice on pensions is available from Retirement Solutions.

They have over 20 advisers nationwide and as their name suggest specialise in retirement planning and pension solutions. Meetings can be held in the comfort of your own home with one of our pension advisers in Birmingham.

Pension Advice on:

For individuals
Personal Pensions Advice
Stakeholder Pensions
Children’s Pensions
SIPP Pensions
Family SIPPs

Pension Advice For Companies in Birmingham

Group Pensions Advice
Company Pensions
Corporate Pensions
Group SIPP Pensions

Leeds Office Address: Newhall Street, Birmingham, B3 3QR

Call Retirement Solutions direct on 0800 043 6701

Need an independent financial adviser IFA in Liverpool then Retirement Solutions can help with Independent Financial Adviser in Liverpool.

Financial Advice Liverpool

Independent Financial Advice on the following:

• Pensions
• Company Pensions
• Company Life Insurance
• Employee Benefits
• Business Planning and Protection
• SIPP Pensions
• Income Drawdown
• Annuities
• Investments
• Savings
• Mortgages
• Equity Release
• Life Insurance
• Loans

Local, friendly firm offering expert advice. Expert financial advice tailor-made to your circumstances, needs and the prevalent economic climate. Truly independent advice without any ties or bias.

Based in Liverpool area, but advise clients from all over the UK and abroad.

The first appointment is free and gives you the opportunity to decide whether to use our services.

IFA Liverpool

If you live in or around Leeds and you are looking for an Independent Financial Adviser for pension advice in Leeds then we recommend a national firm of retirement specialists, Retirement Solutions.

The UK State Pension is a good starting point for your retirement needs but if you want a comfortable retirement then you need to save for yourself in a pension scheme. Independent financial advice on pensions is available from Retirement Solutions.

They have over 20 advisers nationwide and as their name suggest specialise in retirement planning and pension solutions. Meetings can be held in the comfort of your own home with one of our pension advisers in Leeds.

Pension Advice on:

For individuals
Personal Pensions Advice
Stakeholder Pensions
Children’s Pensions
SIPP Pensions
Family SIPPs

Pension Advice For Companies in Leeds

Group Pensions Advice
Company Pensions
Corporate Pensions
Group SIPP Pensions

Leeds Office Address: 1 City Square, Leeds LS1 2ES

Call Retirement Solutions direct on 0800 043 6701

If you live in or around Liverpool and you are looking for an Independent Financial Adviser for pension advice in Liverpool then we recommend a national firm of retirement specialists, Retirement Solutions.

The UK State Pension is a good starting point for your retirement needs but if you want a comfortable retirement then you need to save for yourself in a pension scheme. Independent financial advice on pensions is available from Retirement Solutions.

They have over 20 advisers nationwide and as their name suggest specialise in retirement planning and pension solutions. Meetings can be held in the comfort of your own home with one of our pension advisers in Liverpool.

Pension Advice on:

For individuals
Personal Pensions Advice
Stakeholder Pensions
Children’s Pensions
SIPP Pensions
Family SIPPs

Pension Advice For Companies in Liverpool

Group Pensions Advice
Company Pensions
Corporate Pensions
Group SIPP Pensions

Liverpool Office Address: Dale Street, Liverpool L2 2HF

Call Retirement Solutions direct on 0800 043 6701

If you live in or around London and you are looking for an Independent Financial Adviser for pension advice in London then we recommend a national firm of retirement specialists, Retirement Solutions.

The UK State Pension is a good starting point for your retirement needs but if you want a comfortable retirement then you need to save for yourself in a pension scheme. Independent financial advice on pensions is available from Retirement Solutions.

They have over 20 advisers nationwide and as their name suggest specialise in retirement planning and pension solutions. Meetings can be held in the comfort of your own home with one of our pension advisers in London.

Pension Advice on:

For individuals
Personal Pensions Advice
Stakeholder Pensions
Children’s Pensions
SIPP Pensions
Family SIPPs

Pension Advice For Companies in London

Group Pensions Advice
Company Pensions
Corporate Pensions
Group SIPP Pensions

London Office Address: Curzon House, 64 Clifton Street, London, EC2A 4HB

Call Retirement Solutions direct on 0800 043 6701

If you are looking for pension advice then you need the services of an independent financial adviser and in particular one that specialises in pensions.

An independent pension specialist will look at your individual circumstances and research the whole market to find you the right pension plan to suit your personal needs.

What type of pension do I need?

There are many pension schemes on the market and these are some of them:

• Personal pension plan
• Stakeholder pension plan
• Self Invested personal pension (SIPP)
• Family SIPP

These are just a few of the many variants of pension plans and it is very important to get independent pension advice before deciding which is the right one for you. There are advantages and disadvantages of each of these pension schemes and it is very important to understand them before making a decision.

Getting Good Pension Advice

There is no substitute for good pension advice from a pension specialist. After conducting a thorough review of your financial circumstances and an understanding of your objectives an independent financial adviser will conduct research of the whole pension market and recommend the most suitable pension plan for you.

For pension advice in the UK call us on 0800 043 6701

1. What is a stakeholder pension?

A Stakeholder pension is a low cost pension scheme that allows you to save in a tax-efficient way for your retirement.

2. Who is such a pension scheme for?

Anyone who wants to provide an income for themselves when they reach retirement age can take out a stakeholder pension. The State pension is very small and will only provide a basic income in retirement. It is expected in time that the State pension will gradually be eroded. It is therefore advisable to supplement any State pension by making provision for yourself. With a stakeholder pension, you simply contribute during your working life. Then when you come to retire, the funds that have built up provide you with an added income in retirement.

3. Do I have to join a scheme?

If your employer employs 5 or more people (including part-time staff), they will probably have to provide you with access to a stakeholder pension scheme. Your employer does not currently have to contribute to a scheme but only chose a pension company that all staff can contribute to, if they wish. You do not have to join the scheme. But joining and contributing to such a scheme is a key way to ensure that you have enough money to live on comfortably in retirement.

4. What are the tax advantages of a stakeholder pension?

(i) Contributions to a scheme attract basic rate tax relief at source (currently at 20%). For example, if you pay £80 each month, the Government will pay £20 each month on your behalf into the scheme, making the total contribution £100.
(ii) If you pay higher rate tax, you can claim additional tax relief on your Tax
Return (currently 20% i.e. the difference between 40% and 20%).
(iii) Your investments will grow free of UK capital gains tax.
(iv) When you retire or decide to draw the pension, you can take up to 25% on the fund value at that time tax-free.

5. How much can I pay into my stakeholder pension?

You can decide how much to pay into your plan. The more you contribute, the larger your pension will be when you retire. However, the following minimum and maximum amounts apply:
a) Minimum: £20 per payment. This applies to regular contributions or one-off payments.
b) Maximum: You can contribute up to £3,600 gross each year regardless of whether you earn or how much you earn. If you pay more than £3,600 in a year, the maximum you can pay is 100% times your “net relevant earnings”. Net relevant earnings are for employees your gross salary, plus bonuses, plus benefits in kind
and for the self-employed is the net taxable profit for that tax year. There is a maximum pension contribution you can make in any one year (currently £245,000) but this cap will not affect many people.

6. How often can I contribute?

You can pay into your pension scheme whenever you wish. For example, you can choose to pay on a regular basis or every now and then with a single payment. Typically, most schemes will set up a direct debit directly with you so that you pay monthly contributions to the pension provider.

7. Can I change my contributions?

You can increase or decrease your contributions at any time without any penalty. If you decrease, the payment cannot go below the £20 minimum set out in 5a). above. You may need to advise your employer in writing of changes.

8. Can I stop and start my contributions?

Yes. You can stop and start contributions without penalty, say if your financial circumstances change. You can also transfer the funds held with one pension company to another, again without penalty. You would need to check whether your employer would facilitate you making payments to a different pension company to that chosen by your employer.

9. What happens if I change jobs?

The pension plan is personal to you and, therefore, can move with you if you change employment. If your new employer has a stakeholder pension scheme with a different pension company, you can choose whether to begin paying into that new scheme or continue with your existing one.

10. What will I receive when I retire or begin to draw my pension?

You can start to take your benefits, whether or not you have actually retired, at any time between your 55th
and 75th birthday. There are two ways in which you receive your benefits:
a) The whole of the fund value could go to provide you with a regular income for the rest of your life;
b) Alternatively, you can take up to 25% of the fund as a tax-free lump sum, using the balance to provide you with a reduced income for your life. Whichever you choose, you can use some of the fund to give your dependants a pension after your death. You can also choose to have a pension that remains level or one that
increases automatically each year. The amount of the pension you receive depends on the size of the fund, your age, sex, the interest rates prevailing at the time you take your benefits and the type of pension you choose. We strongly recommend that you take independent financial advice at the time you decide to take your benefits.

11. What about charges and hidden costs?

Pension companies will charge a management charge to cover their costs and allow for profit. However, the annual charge is limited in law to 1% of the fund value.

If you live in or around Manchester and you are looking for an Independent Financial Adviser for pension advice in Manchester then we recommend a national firm of retirement specialists, Retirement Solutions.

The UK State Pension is a good starting point for your retirement needs but if you want a comfortable retirement then you need to save for yourself in a pension scheme. Independent financial advice on pensions is available from Retirement Solutions.

They have over 20 advisers nationwide and as their name suggest specialise in retirement planning and pension solutions. Meetings can be held in the comfort of your own home with one of our pension advisers near Manchester.

Pension Advice on:

For individuals
Personal Pensions Advice
Stakeholder Pensions
Children’s Pensions
SIPP Pensions
Family SIPPs

For Companies
Group Pensions Advice
Company Pensions
Corporate Pensions
Group SIPP Pensions

Manchester Office Address: Peter House, Oxford Street, Manchester M1 5AN

Call Retirement Solutions direct on 0800 043 6701