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Personal pensions

A personal pension plan is designed to offer a lump sum and income in retirement. It's important to plan for your retirement early.


Personal pension plansPlanning

You do not have to be in employment to take out a personal pension plan. A personal pension plan can be provided for your spouse, partner, child or children, to whom it will revert after they turn 18.

Any UK resident under age 75 can make contributions to a personal pension plan, which are then invested and a fund is built up.

The amount payable at the time of retirement depends upon a few factors: the amount of contributions made; the performance of the investment fund; charges payable; and the annuity rate at the date of retirement – this is the main consideration when a pension fund is converted into a pension.

The minimum age you can draw benefits from a personal pension is age 55, and there is no upper age limit.

Before April 2011, the upper limit was 75 years old, but this has be scrapped in favour of flexi-access drawdown schemes, which can be a viable alternative to purchasing an annuity.

If you die before taking benefits from your pension, and younger than 75, the case is often that your funds will be passed to your spouse or elected beneficiary without being subject to inheritance tax (although other taxes may apply).

If you haven't taken your pension and you die after age 75, your pot can still be passed to a beneficiary without being subject to inheritance tax. If the pot is passed on as a lump sum, it is subject to tax at your marginal rate, but if it is paid as income, it will only be subject to income tax.

Contact our personal pensions advisers to arrange an appointmentTimeMgt

While we are based in Glasgow, we are happy to travel to visit clients across Scotland and the rest of the UK. For free initial personal pensions advice from our experienced financial advisers, contact us on 0141 272 0000 or fill out our online enquiry form.