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641-10
self-invested personal pensions (SIPPs) - these allow you to control the specific investments that make up your pension fund
641
Personal pensions
10
765
889
641-11
You should check that your provider is registered with the Financial Conduct Authority (FCA), or the Pensions Regulator if it’s a stakeholder pension.
641
Personal pensions
11
890
1,040
641-12
Paying into a personal pension
641
Personal pensions
12
1,041
1,071
641-13
You can either make regular or individual lump sum payments to a pension provider. They will send you annual statements, telling you how much your fund is worth.
641
Personal pensions
13
1,072
1,233
641-14
You usually get tax relief on money you pay into a pension. Check with your provider that your pension scheme is registered with HM Revenue and Customs (HMRC) - if it’s not registered, you won’t get tax relief.
641
Personal pensions
14
1,234
1,444
641-15
Choosing a personal pension
641
Personal pensions
15
1,445
1,472
641-16
Citizens Advice has information about choosing a personal pension.
641
Personal pensions
16
1,473
1,539
641-17
Independent financial advice
641
Personal pensions
17
1,540
1,568
641-18
You can find an independent financial adviser:
641
Personal pensions
18
1,569
1,615
641-19
from Unbiased
641
Personal pensions
19
1,616
1,629
641-20
from the Personal Finance Society
641
Personal pensions
20
1,630
1,663
641-21
You’ll usually have to pay for this advice.
641
Personal pensions
21
1,664
1,707
641-22
How you can take your pension
641
Personal pensions
22
1,708
1,737
641-23
Most personal pensions set an age when you can start taking money from them. It’s not normally before 55. Contact your pension provider if you’re not sure when you can take your pension.
641
Personal pensions
23
1,738
1,924
641-24
You can take up to 25% of the money built up in your pension as a tax-free lump sum. You’ll then have 6 months to start taking the remaining 75%, which you’ll usually pay tax on.
641
Personal pensions
24
1,925
2,103
641-25
The options you have for taking the rest of your pension pot include:
641
Personal pensions
25
2,104
2,173
641-26
taking all or some of it as cash
641
Personal pensions
26
2,174
2,206
641-27
buying a product that gives give you a guaranteed income (sometimes known as an ‘annuity’) for life
641
Personal pensions
27
2,207
2,306
641-28
investing it to get a regular, adjustable income (sometimes known as ‘flexi-access drawdown’)
641
Personal pensions
28
2,307
2,400
641-29
Ask your pension provider which options they offer (they may not offer all of them). If you don’t want to take any of their options, you can transfer your pension pot to a different provider.
641
Personal pensions
29
2,401
2,592
641-30
Taxes and charges
641
Personal pensions
30
2,593
2,610
641-31
Your pension provider will take off any tax you owe before you get money from your pension pot.
641
Personal pensions
31
2,611
2,706
641-32
You might have to pay a higher rate of tax if you take large amounts from your pension pot. You could also owe extra tax at the end of the tax year.
641
Personal pensions
32
2,707
2,855
641-33
Your pension provider might charge you for withdrawing cash from your pension pot - check with them about this.
641
Personal pensions
33
2,856
2,967
641-34
Get regular payments from an annuity
641
Personal pensions
34
2,968
3,004
641-35
You might be able to buy an annuity from an insurance company that gives you regular payments for life. You can ask your pension provider to pay for it out of your pension pot.
641
Personal pensions
35
3,005
3,181
641-36
The amount you get can vary. It depends on how long the insurance company expects you to live and how many years they’ll have to pay you. When they calculate the amount they should take into account:
641
Personal pensions
36
3,182
3,381
641-37
your age and gender
641
Personal pensions
37
3,382
3,401
641-38
the size of your pension pot
641
Personal pensions
38
3,402
3,430
641-39
interest rates
641
Personal pensions
39
3,431
3,445
641-40
your health (sometimes)
641
Personal pensions
40
3,446
3,469
641-41
There are different kinds of annuities. Some are for a fixed time (for example, payments for 10 years instead of your lifetime) and some continue paying your spouse or partner after you die.
641
Personal pensions
41
3,470
3,660
641-42
You don’t have to buy your annuity from your pension provider.
641
Personal pensions
42
3,661
3,723
641-43
Invest the money in a drawdown fund
641
Personal pensions
43
3,724
3,759
641-44
You may be able to ask your pension provider to invest your pension pot in a flexi-access drawdown fund.
641
Personal pensions
44
3,760
3,864
641-45
From a flexi-access drawdown fund you can:
641
Personal pensions
45
3,865
3,907
641-46
make withdrawals
641
Personal pensions
46
3,908
3,924
641-47
buy a short-term annuity - this will give you regular payments for up to 5 years
641
Personal pensions
47
3,925
4,005
641-48
pay in - but you’ll pay tax on contributions over £4,000 a year
641
Personal pensions
48
4,006
4,069
641-49
Keeping your capped drawdown fund
641
Personal pensions
49
4,070
4,103
641-50
If you have a ‘capped drawdown’ fund and want to keep it, your money will stay invested.
641
Personal pensions
50
4,104
4,192
641-51
You can keep withdrawing and paying in. Your pension provider sets a maximum amount you can take out every year. This limit will be reviewed every 3 years until you turn 75, then every year after that.
641
Personal pensions
51
4,193
4,394
641-52
Withdraw cash from your pension pot
641
Personal pensions
52
4,395
4,430
641-53
You may be able to take cash directly from your pension pot. You could:
641
Personal pensions
53
4,431
4,502
641-54
withdraw your whole pension pot
641
Personal pensions
54
4,503
4,534
641-55
withdraw smaller cash sums
641
Personal pensions
55
4,535
4,561
641-56
pay in - but you’ll pay tax on contributions over £4,000 a year
641
Personal pensions
56
4,562
4,625
641-57
When you can’t withdraw cash
641
Personal pensions
57
4,626
4,654
641-58
You can’t take smaller cash sums if any of the following apply:
641
Personal pensions
58
4,655
4,718
641-59
you’ve already saved £1,073,100 in pension schemes over your lifetime (your lifetime allowance)
641
Personal pensions
59
4,719
4,814
641-60
you have some type of lifetime allowance protection
641
Personal pensions
60
4,815
4,866
641-61
you’re under 75, and the sums you want to withdraw are bigger than the amount of lifetime allowance you have left
641
Personal pensions
61
4,867
4,980
641-62
Get help
641
Personal pensions
62
4,981
4,989
641-63
Contact your pension provider first if you need help with a personal pension.
641
Personal pensions
63
4,990
5,067
641-64
If they can’t help, you can get free and impartial information from The Pensions Advisory Service (they don’t provide financial advice).
641
Personal pensions
64
5,068
5,204
641-65
Financial advice
641
Personal pensions
65
5,205
5,221
641-66
You can find a financial adviser if you want advice. You’ll usually have to pay for their services.
641
Personal pensions
66
5,222
5,321
641-67
If you’re over 50
641
Personal pensions
67
5,322
5,339
641-68
Pension Wise has information about your pension options. If you’re over 50 you can book a free appointment to talk about your options. Pension Wise doesn’t cover the State Pension, ‘final salary’ or ‘career average’ pensions.
641
Personal pensions
68
5,340
5,565
641-69
State Pension
641
Personal pensions
69
5,566
5,579
641-70
For help with your State Pension contact the Pension Service.
641
Personal pensions
70
5,580
5,641
641-71
Complaints
641
Personal pensions
71
5,642
5,652
641-72
If you have a complaint about how your pension scheme is run, talk to your pension provider first. They have to respond within 8 weeks.
641
Personal pensions
72
5,653
5,788
641-73
You can also contact the Pensions Ombudsman if you’re concerned about how a pension scheme is run.
641
Personal pensions
73
5,789
5,887
641-74
Complain about marketing
641
Personal pensions
74
5,888
5,912
641-75
You can get help from the Pensions Advisory Service or complain to the Financial Ombudsman’s Service about how a pension scheme has been marketed to you.
641
Personal pensions
75
5,913
6,066
641-76
If your provider has broken the law
641
Personal pensions
76
6,067
6,102
641-77
If you think your pension provider has broken the law, you can complain to:
641
Personal pensions
77
6,103
6,178
641-78
the Pensions Regulator for workplace pensions
641
Personal pensions
78
6,179
6,224
641-79
the Financial Conduct Authority for personal and stakeholder pensions
641
Personal pensions
79
6,225
6,294
641-80
If your provider goes bust
641
Personal pensions
80
6,295
6,321
641-81
If the pension provider was authorised by the Financial Conduct Authority and can’t pay, you might get compensation from the Financial Services Compensation Scheme (FSCS).
641
Personal pensions
81
6,322
6,493
642-0
Overview
642
Plan your retirement income
0
0
8
642-1
A pension is a way to save money for later in your life.
642
Plan your retirement income
1
9
65
642-2
You may be able to get:
642
Plan your retirement income
2
66
89
642-3
a pension from the government (‘State Pension’)
642
Plan your retirement income
3
90
137
642-4
money from pension schemes you or your employer pay into
642
Plan your retirement income
4
138
194
642-5
You might need more money than just the State Pension when you retire.
642
Plan your retirement income
5
195
265
642-6
Find out how much State Pension you could get (your forecast) and when you can get it.
642
Plan your retirement income
6
266
352
642-7
Use the Money Advice Service’s pension calculator to get an estimate of your income when you retire and the ways you can increase it.
642
Plan your retirement income
7
353
486
642-8
Your pension options
642
Plan your retirement income
8
487
507
642-9
You can pay into as many pension schemes as you want. It depends on how much money you can set aside.
642
Plan your retirement income
9
508
609
642-10
You usually get tax relief up to certain limits on money you pay into a pension scheme.
642
Plan your retirement income
10
610
697
642-11
Private pension schemes
642
Plan your retirement income
11
698
721
642-12
| What it is
642
Plan your retirement income
12
722
734
642-13
Workplace pensions | Arranged by your employer. Usually both you and your employer pay into it. What you get depends on the type of scheme your employer offers.
642
Plan your retirement income
13
735
895
642-14
Personal and stakeholder pensions | A private pension that you pay into. Employers can also pay into them as a workplace pension scheme. What you get depends on how much is paid in and how well the investment does.
642
Plan your retirement income
14
896
1,110
642-15
State Pension from the government
642
Plan your retirement income
15
1,111
1,144
642-16
If you reached State Pension age before 6 April 2016
642
Plan your retirement income
16
1,145
1,197
642-17
| What it is
642
Plan your retirement income
17
1,198
1,210
642-18
Basic State Pension | The basic State Pension is a regular payment you can get from the government when you reach State Pension age. The amount you get depends on your National Insurance contributions and credits. The maximum you get is £137.60 per week.
642
Plan your retirement income
18
1,211
1,465
642-19
Additional State Pension | An extra amount on top of your State Pension. Not a fixed amount. How much you get depends on your earnings and whether you claim certain benefits.
642
Plan your retirement income
19
1,466
1,640
642-20
Pension Credit | For people on a low income. Tops up your weekly income to £177.10 (single people) or £270.30 (couples). You may get more if you’re a carer, are severely disabled, have responsibility for a child, or have certain housing costs.
642
Plan your retirement income
20
1,641
1,884
642-21
If you reach State Pension age on or after 6 April 2016
642
Plan your retirement income
21
1,885
1,940
642-22
| What it is
642
Plan your retirement income
22
1,941
1,953
642-23
New State Pension | The new State Pension is a regular payment you can get from the government if you reach State Pension age on or after 6 April 2016. The amount you get depends on your National Insurance contributions and credits. The full new State Pension is £179.60 per week.
642
Plan your retirement income
23
1,954
2,234
642-24
Protected payment | Any amount over the full new State Pension (£179.60) that you get from your National Insurance contributions or credits from before 6 April 2016 is protected. It will be paid on top of the full new State Pension.
642
Plan your retirement income
24
2,235
2,467
642-25
Pension Credit | For people on a low income. Tops up your weekly income to £177.10 (single people) or £270.30 (couples). You may get more if you’re a carer, are severely disabled, have responsibility for a child, or have certain housing costs.
642
Plan your retirement income
25
2,468
2,711
642-26
Private pension schemes
642
Plan your retirement income
26
2,712
2,735
642-27
Workplace pensions and personal or stakeholder pensions are a way of making sure you have money on top of your State Pension.
642
Plan your retirement income
27
2,736
2,861