The Types of Pension Available in the UK

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<h1>The Types of Pension Available in the UK</h1><strong> Author: <a href='http://www.articleseen.com/profile_Gareth Hoyle.aspx'>Gareth Hoyle</a></strong><br /><p>There are lots of types of pensions to choose from. In this article, we'll give you an overview of some of the most popular, helping you to understand your options. SIPP Interestingly, you can invest in a whole range of different things: commercial property, shares, REITs (real estate investment trusts) and more. In fact, you may even be able to buy a property that you intend to use for your own business. Stakeholder pension This is a type of pension that must comply with government-mandated standards that aim to ensure value and security, as well as aiming to make it easier for you to switch between providers. With stakeholder plans, companies are restricted to charging you no more than 1.5% annually for the initial 10 years and, thereafter, no more than 1% annually. Occupational pension A company pension or occupational pension can work in a number of ways. Sometimes a trust is established and trustees manage it; other companies choose to appoint another company to manage their pension scheme on their behalf. The law says that all companies with five or more employees must offer a pension plan. Of course, there is a wide range of differences between the plans that employers choose to provide. To help you understand some of the main differences, here is a brief introduction to the three main types of occupational pensions: contributory, non-contributory and open stakeholder schemes. Non-Contributory: This is where you do not make your own contribution. Under a non-contributory pension scheme, your employer alone makes payments into your pension on your behalf. Contributory: Under a contributory pension scheme, your employer will make a contribution to your pension. Additionally, you will contribute part of your earnings towards your pension too; for example, you may choose to contribute 5% of your earnings. Sometimes an employer will base their contribution on how much their employee chooses to invest, such as by offering to match their contribution up to a certain amount. Open: An open stakeholder pension scheme is different from the ones mentioned above because your employer will not make any contribution towards your pension. Instead, you will make contributions on your own and you'll usually have flexibility as to how much you save.</p><strong>About the Author:</strong><br /> A self-invested personal pension or <a rel="nofollow" href="http://www2.skandia.co.uk/Pensions1/"> SIPP </a> is a type of do-it-yourself pension scheme. Some people get the help of a financial adviser and others make the investment decisions on their own; either way, you can have more control over where your money is invested. <p> Article Source: <a href='http://www.articleseen.com/Article_The-Types-of-Pension-Available-in-the-UK_55802.aspx'> http://www.articleseen.com/Article_The Types of Pension Available in the UK_55802.aspx</a></p>

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