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Phased retirement |
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Phased retirementThe arrangement of a personal pension plan in segments to enable the policy holder to take a pension in stages. The lump sum entitlement is also phased. The policy holder may elect to phase the purchase of an annuity or to phase income drawdown (see personal pension plan).Similar MatchesDebt retirementDebt retirementThe complete repayment of debt. See: Sinking fund. RetirementRetirementRemoval from circulation of stock or bonds that have been reacquired or redeemed. Retirement annuity contract (RAC)Retirement annuity contract (RAC)Prior to 30th June1988, people not in pensionable employment (employment where no pension scheme exists) or people who were self employed were able to qualify for tax relief for contributions made to a pension scheme known as a retirement annuity under sections 226 of the Income and Corporation Taxes Act 1970. Although RACs were replaced by personal pension plans from 1st July 1988 those already in force may continue to operate. Individual retirement accountIndividual retirement accountIn the US, a tax-deferred retirement savings account which may be set up by people in employment. IRA contributions are tax deductible irrespective of income if neither spouse is a member of a qualified plan or trust. A person who is a member of a qualified plan may still deduct IRA contributions providing adjusted gross income is below a certain level. Although savings grow tax free over the term of the plan, when pension benefits are taken, they will be liable to tax. Early retirementEarly retirementFor company pension schemes, an employee may retire at an early age provided it is authorised by the company. In the UK, qualifying ages are 50 for men and 45 for women. However, the amount of pension payable will reduce compared with the amount payable at normal retirement age. Further Suggestionsnormal retirement dateIRA (individual Retirement Account) Individual Retirement Account (IRA) Registered Retirement Savings Plan (RRSP) Retirement Protection Act of 1994 retirement relief Bonds Enabling Annual Retirement Savings (BEARS) Employee Retirement Income Security Act Tax deferred retirement plans unfunded unapproved retirement benefits scheme normal retirement age Normal retirement Employee Retirement Income Security Act (ERISA) |
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