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Personal Pension Schemes
These are pension schemes which you may have taken out in the past which did not involve an employer or where you have left an old employer and the pension has been passed to you. You may in fact still be paying into these. What ever the situation you may not have considered how the funds in which you are invested are performing and have not switched them to better performing funds.
Whatever the situation you should have these funds analysed and if necessary switched to ensure that they grow to as large an amount as possible.
It is not possible for Isle of Man residents to start a new personal pension with an insurance company but it may be possible to pay into an existing scheme. Please contact us to find out and we can help you with the arrangements.
Traditionally these plans have been held in two different styles, the first was the standard pension into which you paid contributions and there were no restrictions on the annuity that you could receive and the other was called an Appropriate Personal Pension scheme which replaced the SERPS (State Earnings Realted Pension Scheme) now known as the S2P (State Second Pension) which accumulated the contributions by having part of your and your employers National Insurance contributions diverted to this pension.
From April 6th 2012 there is no longer any difference between the two styles of pension and therefore no restrictions on the annuities provided. This means that you can buy an annuity with these pensions with no rstriction onthe rate of increase, the size of a spouse's pension or the guarantee. The other big difference is that an Isle of Man resident can take 30% tax free cash on any of the schemes not just the standard ones.