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State Second Pension |
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State Second PensionIn April 2002 the State Second Pension replaced the State Earnings Related Pension Scheme (SERPS) to pay a top-up pension based on employed people's earnings. Anyone earning over £3,500 but under £9,500 a year will be treated as if they earn £9,500 so their S2P could be as much as doubled. People earning between £9,500 and £21,600 will see a smaller increase. There will be no change for people earning over £21,600.Carers on less than £3,500 a year or who have no earnings will get credits for the S2P and will be treated as if they earn £9,500 a year. To qualify for credits they must get child benefit for a child under 6, be entitled to invalid care allowance or get home responsibility protection because they are caring for a sick or disabled person.Later on S2P will change and anyone earning over £9,500 will be better off opting out in favour of a private or occupational pension scheme.Similar MatchesUnfunded pension planUnfunded pension planA pension plan which is funded by an employer from current income for the benefit of retirees. Personal pensionPersonal pensionA structured personal savings and investment plan to provide for your financial needs after you retire. You can use some or all of the proceeds from a personal pension to pay off an interest-only mortgage. You will need to arrange life assurance separately to a personal pension. Deferred state pensionDeferred state pensionWhen reaching retirement age, a person can elect to defer payment of his/her state pension. The result of this is to increase the value of the pension by one seventh of one percent for every week deferred. The maximum deferment period is five years and no further contributions are required. Pension mortgagePension mortgageA type of personal pension plan which utilises the tax free lump sum entitlement from the pension fund at retirement age to repay a mortgage whilst the remainder is (and must be) used to provide a pension. Throughout the mortgage term the borrower pays interest to the lender such as a building society or bank whilst additionally making payments into the pension scheme. Tax relief is allowable on both the interest payments to the lender and on the contributions to the pension scheme which makes this type of plan attractive. Guaranteed minimum pensionGuaranteed minimum pensionThe minimum pension payable by a pension scheme in order that members may contract out of S2P (State Second Pension). Further Suggestionspersonal pension planPension Benefit Guaranty Corporation (PBGC) company pension scheme Pension plan State Earnings Related Pension Scheme personal pension scheme pension plan Underfunded pension plan National Insurance Pension (State Pension) National Insurance (NI) Basic Pension stakeholder pension Inland Revenue Pension Schemes Office Master pension plan appropriate personal pension plan Unfunded pension plan Pensions Compensation Board Contingent pension liability occupational pension scheme basic state pension Keogh pension plan defined contribution pension plan Funded pension plan defined benefit pension plan pension credit Advance funded pension plan |
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