Article provided by: Amicus Wealth Limited
One of the most significant financial decisions you must make in life is planning for your future when you retire. With good preparation, you can enjoy an extraordinary new beginning after a long life in the world of work.
However, in the UK, many citizens are unaware of the retirement system, and which is the best way to secure their future. If you want to do planning for retirement, you should know your options or which is the best way to take.
How Does the Pension System Work in the UK?
The retirement system is based on three pillars of support, which cover very basic needs. The philosophy of this system is that it is the individual who is responsible for planning their retirement. The three main assistances are:
- Public basic pension or State Pension: this is a lump sum for workers who have contributed at least 44 years to the system. Thanks to the latest reform, Britons who can prove the minimum contribution period will be entitled to a pension of £155.65 per week (irrespective of the amount of their contributions).
- Additional Pension or Second State Pension: This second level, also known as S2P provides an additional amount based on income, also of a contributory nature.
- Pension Credit: This third pillar is also contributory. It is tax-free and benefits people with low basic incomes weekly. It is a kind of welfare pension that guarantees a minimum income to people with the greatest risk of exclusion.
Private Pension Plans
From 2012, UK companies have to subscribe their employees to a particular pension plan. To do this, the employee must be over 22 years of age, earn over £10,000 a year, and not have their pension fund plan. Although this measure has been widely accepted by both employees and employers (by 2018, at least 1.2 million companies had implemented the plans), it may not be the most convenient option for the worker.
If you want to secure your financial future by the time you retire, the wisest thing is for you to hire the services of an excellent financial advisory service, such as Amicus Wealth. The idea of the private retirement plan is that the funds you deposit are invested to generate additional income that you can enjoy later.
When you select the financial service, you make sure that the retirement system works in your best interests, not the interests of the company. This way, the financial experts will be able to study your particular case and advise you on the best decisions to make with your investment fund. If you wish to make extraordinary planning for retirement in London contact us; Amicus Wealth's excellent team of 20 financial advisors will be happy to assist you.
Trust the Experts
If you want to secure your financial future for your years of rest, you are in the right place. Since 2015 our three founders have put their more than 25 years of experience at the service of our satisfied clients. Let our group of specialists help you design a tailored solution so that you can do extraordinary planning for retirement in London. Contact us.
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