Pension Advice

In the UK, there are three main types of pensions: State Pensions, Workplace Pensions, and Personal Pensions. The State Pension is a regular payment from the government that you can claim when you reach State Pension age, provided you’ve paid enough National Insurance contributions. Workplace pensions are usually arranged by employers, while personal pensions are set up by individuals. Each type of pension comes with its own rules, benefits, and tax implications.

The age you can start claiming your pension varies depending on the type of pension you have. The State Pension age is currently 66, but this is rising to 67 by 2028. Workplace and Private Pensions often allow you to start accessing your pension savings from the age of 55 (rising to 57 by 2028), though you may decide to defer taking your pension to receive larger payments later.

Your Defined Contribution pension is portable, meaning you can transfer it to your new employer’s scheme or a personal pension without losing any benefits.

Yes, thanks to Pension Freedoms, you can typically access your pension from age 55 (rising to 57 in 2028). Early access might incur penalties and affect your long-term savings, so it’s advisable to plan carefully. Read our Pension Freedoms blog for more information.

Defined Benefit (DB), often referred to as ‘Final Salary’ or ‘career average’ pensions, provide a guaranteed income in retirement based on your salary and the number of years you’ve worked for your employer. Although you still need to make personal contributions to a DB pension, the annual pension income you receive is not based on how much you have paid in. As they are guaranteed for as long as you live, DB pension schemes can provide more security. However, few employers still offer them to new employees.

Need advice on your current Defined Benefit Plan or looking to set one up? Get in touch today.