LMJ is a firm of independent financial advisers specialising in the management of investment portfolios and pensions. We have been helping clients navigate complex financial markets since 2001 and from those very early days, our business has evolved primarily through client recommendations. Read More
A personal pension is your own private pension that you can take from job to job. It is ideal if you don't have access to a company scheme or are self-employed. It is a type of money purchase pension. You pay money into your plan and choose where to invest it from a range of funds. These are managed on your behalf. The fund is normally used to buy an annuity (a taxable income for life) when you retire.
Stakeholder pensions are similar to personal pensions and are also a money purchase type of pension. They are flexible and especially suitable if you can only afford to save small sums.
Employers with five or more staff must generally offer access to a stakeholder pension if they do not offer an alternative scheme. They may also contribute to the scheme.
You can save as much as you like into any number and type of pensions, including stakeholder pensions. There are also new government rules coming into place shortly called NEST, further details available.
You get tax relief on contributions of up to 100 per cent of your earnings each year. This is subject to an 'annual allowance' which has reduced from £255,000 for the 2010-2011 tax year to £50,000 for the 2011-12 tax year.
A Self Invested Personal Pension (SIPP) is a type of personal pension plan. It works in the same way for contributions, tax relief and eligibility. However the main difference is that the SIPP has a more flexible approach to investments.
A conventional personal pension generally involves the plan holder paying money to an insurance company for investment in an insurance policy. This means the money is invested with relatively little choice or freedom from the plan holder.
A SIPP allows you much greater freedom in what to invest in and for the plan to hold these investments directly. You have control over the investment strategy or appoint a manager to monitor your investments.
LMJ Financial Management Ltd
Upper South Hall
Bullen Farm Business Centre
Kent, TN12 5LX
Tel: 01732 874111
Fax: 01732 874222
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