Financial planning is imperative for securing your present and future. Just like you should set aside a regular amount of income for running expenditures and savings, you should also regularly pool in some money in a retirement plan. Retirement plans ensure you save a regular amount of income for the sake of your future –a comfortable and steady income in necessary when you choose to retire, and a retirement plan will help you contribute towards this. However, before you start looking for the best retirement planner Bournemouth has to offer, it is important you know the basics of retirement plans in the UK, so you can get started with your planner in a comfortable and knowledgeable manner.
In this article, we are going to review the three popular retirement plans in the UK, and how these should be selected on the basis of your profession.
Pensions for Self-Employed
If you have your own business or are self-employed in any manner, your retirement plans are going to look different than those who are employed by some organisation. Pension plans for the self-employed can be chopped down into two categories. And while these are the routes of choice for the self-employed people, even those who are employed by an organisation can benefit from it.
1. State Pension
State pension, as the name suggests, is the pension or retirement plan that is offered to you by the Government. The Government starts paying you a regular pension income when you reach the age of retirement that has been stipulated by the state. However, for this to happen, you need to invest in National Insurance at a certain level. State pension can be availed by people of all professions, and it is most beneficial with those who have no set stream of work. So if you do the odd jobs, it is better to invest in a state pension. Get in touch with any retirement planner Bournemouth has, and seek professional advice regarding your state pension plan. The rules for these pension plans keep changing every year, so it is best to consult the government website for the new rules. However, the downside of these state-based plans is that they are not very flexible.
2. Personal Pension
If you are looking for flexible plans, personal pension plans may work with you. These retirement plans are saving schemes that are set up by personal groups with the help of a professional retirement planning advisor. As in any other plan, you have to pay the regular amount of money, however, you have control over where the money is invested. There are many types of personal pension plans and you can even start one yourself. However, to determine what kind is best for you, you need the help of the best retirement planner Bournemouth can give you.
Pensions for Organisational Employees
If you are not working in a self-employed system, usually your employer organisation will provide you with a retirement plan. These organisations have different types of plans, such as the Define contribution Schemes and the Defined Benefits Schemes, and before choosing one, you should get in touch with any of the professional retirement planners Bournemouth as this will help you make an informed choice.
For organisational employees, it is better to opt for workplace retirement plans than personal plans. However, you should always get in touch with a professional before making a decision.
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