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Retirement annuity contract (RAC) |
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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.Similar MatchesEarly 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. Employee Retirement Income Security Act (ERISA)Employee Retirement Income Security Act (ERISA)The law that regulates the operation of private pensions and benefit plans. Normal retirement ageNormal retirement ageThe age at which an individual normally retires (60 to 70 for men and 55 to 70 for women). Men qualify for the state pension at 65 and women currently qualify at 60. However the qualifying normal retirement age for women will be increasing depending on their date of birth, the scale applying for those born after 6th April 1950. For personal pension plans individuals may take retirement between the ages of 50 and 75 and for retirement annuities between the ages of 60 and 75. Normal retirementNormal retirementThe age or number of working years after which a pension plan beneficiary can retire and receive unreduced benefits immediately. Registered Retirement Savings Plan (RRSP)Registered Retirement Savings Plan (RRSP)Tax-sheltered retirement plan for Canadian citizens, much like an American IRA. Further SuggestionsBonds Enabling Annual Retirement Savings (BEARS)retirement relief Retirement Individual Retirement Account (IRA) phased retirement normal retirement date IRA (individual Retirement Account) Retirement Protection Act of 1994 individual retirement account Debt retirement Employee Retirement Income Security Act unfunded unapproved retirement benefits scheme Tax deferred retirement plans |
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