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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 MatchesPension forecastPension forecastUpon request, a written forecast may be obtained from The Pensions Service outlining a person's estimated entitlement to the National Insurance Pension (State Pension) at retirement age (Form BR19). It is based on certain assumptions and total NI contributions paid over the person's working life to date. The forecast takes into account the entitlements to the various segments of the National Insurance Pension namely NI Basic Pension, S2P and the Graduated Retirement Benefit. http://www.thepensionservice.gov.uk Pension mortgagePension mortgageA type of interest-only mortgage where your mortgage payments are combined with payments into your personal pension fund. This is designed to mature on your retirement, so the mortgage loan term must end between the ages of 50 and 75 unless the borrower is in an industry where the Inland Revenue permits earlier retirement. The pension also needs to provide you with an income during retirement, so only twenty five percent of the pension fund can be taken as a lump sum to pay of your mortgage. Flexible pensionFlexible pensionAlso known as deferred income and income drawdown. 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. Defined contribution pension planDefined contribution pension planA pension plan in which benefits are dependent on contributions to and the growth of the pension fund. Further Suggestionspension creditsimplified employee pension plan Pension sponsors Pension plan Pension liabilities Pension Benefit Guaranty Corporation Master pension plan Pension plan State Earnings Related Pension Scheme Advance funded pension plan Unfunded pension plan National Insurance Pension (State Pension) National Insurance (NI) Basic Pension Occupational Pensions Regulatory Authority group personal pension executive pension plan pension mortgage stakeholder pension pension plan occupational pension scheme Underfunded pension plan appropriate personal pension plan non contributory pension plan Pensions Compensation Board Inland Revenue Pension Schemes Office |
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