Pensions help in North Devon

Eclipse Financial Solutions can help you with your pensions.

Pensions made clear

Saving for retirement is something that most of us put off for as long as we can. But the reality is that the sooner you start paying into a pension, the higher your income in retirement is likely to be. If you are working, then you are usually building up the right to a basic state pension - but this may not be enough to provide you with the standard of living that you require during your retirement. This page will help you to understand the benefits of using a pension to save for your retirement, what type of pensions are available, how they work and how to start saving for your retirement.

Types of Pensions

There are three main types of non-state pension, they are:
. occupational salary-related schemes - (also called final salary schemes) offered by some employers.
. occupational defined contribution schemes (also called money purchase pensions) offered by some employers.
. stakeholder pensions and personal pensions - offered by some employers, or you can start one yourself. You may also be offered a group personal pension at work, these are also called money purchase pensions.

Pensions at work

If you work for a business with fewer than five employees, your employer does not have to offer you access to a pension scheme. You should still check what is available as some small employers may offer a scheme anyway.

What are the benefits?

Although you don't have to join any pension scheme offered through your job, it is usually a good idea to join an occupational pension scheme if it is available because:
. your employer normally contributes towards your pension
. you may also get additional benefits such as:
Life insurance which pays a lump sum and/or pension to your dependents if you die while still in service.
. A pension if you have to retire early due to ill health.
. Pensions for your spouse and dependents when you die.

Not all pensions offered by employers are occupational pensions. Your employer may offer a stakeholder pension or a personal pension through a group personal pension arrangement. These pensions are not called occupational pensions even though your employer may contribute.

The value of your investments can fall as well as rise.