Month: February 2022

Safeguarded benefits are defined as benefits that are not money purchase or cash balance benefits. This means defined benefits, guaranteed pensions including guaranteed minimum pensions and guaranteed annuity rates (GARs). An individual with safeguarded benefits worth more than £30,000 within a pension must take financial advice before they can do any of the following: Convert these benefits into a different form of flexible benefits under the scheme.Transfer these benefits to another scheme to take flexible benefits.Take a cash lump sum in respect of these benefits. The issue of giving up Safeguarded benefits is a tricky one. Pensions that have a ‘defined benefit’ or a ‘final salary’ are usually best left where they are. The FCA’s position is that you start your advice from the position of it being ‘unsuitable’ to transfer and then work from there! Where the ...

The most common types of pensions are: State pension – this is a regular pension that you receive from the government which you can claim when you reach state pension age. Workplace pension – this is usually arranged by your employer. A percentage of your pay is put into your pension every payday and your employer will usually contribute. Private/ personal pension and Self Invested personal Pension (SIPP) Approachable finance offer private and SIPP pensions these give you an alternative or additional pension income to your work-based pension. A good IFA and Wealth Manager will advise the portfolios that are best suited your needs and risk approach and will manage the investments for you. 2. Pay into your pension as soon as you can – the earlier that you start paying into your pension, the longer that the investment has time to grow. 3. Free money from the government...