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Long-term products which help customers build up money to use to buy an income when they retire. They're tax-efficient because theres tax relief at the basic rate of IT on the payments made into the plan 2.7.2 - personal pension plans personal pension is a type of investment fund. Its a long-term savings plan thats tax-efficient and is purchased by an individual throughout their working life to save for retirement. Pensions can be sub-divided into occupational and individual and they both operate on a similar principle: people pay money into a fund, which uses their money to invest in assets and to provide them with a retirement income People can invest money regularly into their personal pension or they can make one-off payments when they can afford them. The maximum annual amount a non-taxpayer can pay and receive the tax relief is £2880. A taxpayer will a tax relief on pension contributions of up to £40,000, known as the annual allowance. The investor can choose from a wide range of funds, depending on their risk appetite and on their retirement goals Operated by employers, who may also pay contributions into them for their employers. They're 2 types of occupational pension: Gov believes that people arent saving enough for their retirement and so it introduced auto-enrolment into workplace pensions. This means that most workers must be automatically enrolled by their employer into a workplace pensions scheme; they then have the option to leave if they wish. This obligation was introduced in the pensions act 2008. If its a FSS it must provide Employees paid pension based on years worked and their salary at the time of retirement. Most schemes require payments from their salary and the employer also has to make payments to ensure that the benefits can be paid at 2.7 -PENSION PLANS ...
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