Pensions
Pensions Advice in Cambridge
Pensions
The basic principle behind a pension is that you make payments, whether on a regular basis or as one-off amounts, to an insurance company to help you fund for your retirement. These payments are invested on your behalf in a range of different investments to build up a 'pot of money' that is then used to provide an income during retirement.
Pension Funds
These investments are commonly known as funds and most insurance companies offer a selection of funds that invest in different types of assets, for example equities (company shares) or property. The objective of most funds is to invest in assets that will increase in value over time, although this cannot be guaranteed as the value of certain assets can go down as well as up.
Lump sums and Annuities
When you reach your selected retirement age you take the money saved up in your pension and use this to provide an income for the rest of your life. One option would be to purchase a financial product called an annuity from an insurance company. This could be from the same company that provided the pension or a different company. An annuity is not the only option available these days, so it is important to discuss your own circumstances with an Independent Financial Adviser. As well as providing an income for life, in most cases, it is possible for some of the pension pot to be taken as a tax-free lump sum before you buy an annuity.
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Call us on 0845 263 3740 for qualified advice about your pension today.
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AIA (Cambridge) Ltd offer professional, independent financial advice in Cambridge for all your savings and investments.