PAYING INTO A PERSONAL PENSION PLAN OR STAKEHOLDER PENSION

You may be able to pay into either a personal pension plan or stakeholder pension at the same time as paying into the LGPS.

 

You can pay up to 100% of your total taxable earnings in any one tax year (or £3600 if greater) into any number of concurrent pension arrangements of your choice and be eligible for tax relief on those contributions. There are controls on the pension savings you can have before you become subject to a tax charge as per HM Revenue & Customs rules.

 

With these arrangements, you choose a provider, usually an insurance company. You may wish to consider their different charges, alternative investment routes and past performance. You choose how much to pay into the arrangement and how to pay. Payments are usually made direct from your bank account. You can often choose which investment route you prefer.

 

Your fund should grow as it is invested and will be available later in your life to convert into additional benefits. You will be able to take up to 25% of your Fund as a tax free lump sum (or, if lower, 25% of the lifetime allowance less an adjustment for the value other pension benefits), with the remainder available for conversion into a pension.