Final Salary Pensions
Final Salary Pensions
A final salary pension scheme provides an income upon retirement that is, true to its name, based upon your final salary at the company. The proportion that it makes up of your final salary is usually dependent on how long you have worked for the company, as well as other factors included in the scheme rules.
As the risk of the scheme is on the employer and not the employee they provide a valuable benefit, but due to this investment risk which has seen many employer schemes since the late 1990s suffer due to difficult investment conditions, this type of scheme is becoming less commonplace. Many companies and pension funds are either concerned about or experiencing pension shortfalls, leading to the closing off of final salary pensions to new employees.
For impartial advice on your pension scheme arrangements we offer a no obligation service provided by Eden Personal Financial Planning. Eden Personal Financial Planning are a leading UK firm of independent financial advisors, with experience and expertise focused on the areas of pensions and retirement investment.
Alternatively click on pension advertising links below: