Best Pension Plan

There is probably no such thing as an overall ‘best pension plan’. Most people would call the money they receive each month after retirement age their ‘pension’. Throughout your working life, you will probably contribute to a pension fund or funds in one or more ways. Some of these contributions are voluntary such as in private pension schemes, while others may be mandatory such as state pensions and some occupational schemes. At retirement age, your accumulated pension savings are used to purchase some form of product (often an annuity) that will pay sums to you until you die. After death, depending upon the scheme, it may be possible for some payments to continue going to your surviving partner.

In terms of occupational and state pension provisions, you may in reality have very little choice over the nature of the plan and the benefits it pays. If you have a private pension, upon reaching retirement age you may be able to use the accumulated funds to purchase an annuity of your choice – and there is a large selection to choose from. In terms of what is the best pension plan, this cannot be answered other than on a person-by-person basis. Planning and saving for your retirement is one of the most important things you’ll ever need to do and unfortunately it may also be one of the most complex! Each person’s position with respect to earnings, family commitments, taxation options and retirement vision will be different. What is right and the best use of funds for your neighbour may not be right for you, so seek professional advice before you proceed with a plan.

Explore the best pension plans today!

Preparing the best Pension Plan

• Don't put it off! It can be hard to persuade people in their 20s and 30s to think about pensions but if you want to maximise your savings and return potentials then the sooner you start the better. Starting to worry about it 4 weeks before you retire may not be the best strategy!
• Be realistic. For the vast majority of people, 65 years of age is not the time to start launching new careers and trying to find significant new income possibilities. Fine if you do want to take that on, but if not, you should be planning to generate through pension savings a good living income for those latter years so that you can carry on working at 65+ if you want to rather than because you must to survive;
• Understand your choices. In the case of a private pension scheme (this is often not applicable to occupational or government pensions) you can invest it in many different product schemes that can generate very different benefits. It usually pays to avoid hasty decisions in this area and remember some investment schemes could put your capital at risk! 
• Recognise the complexities of pensions savings schemes. Unless you are very comfortable with the intricacies of pensions, taxation and savings/investments, it may be advisable to consult a specialist financial organisation for advice and guidance. Getting it wrong could cost you a lot of money.