“Why is it so difficult to stop your pension money making the climate crisis worse?”
– so asked The Guardian in August 2019. Well, it isn’t anymore. As the first financial adviser to spend 100% of our time on impact and environmental investment we can help. Not only can we help you make a positive difference to the planet with your pension savings, but we also use these plans as part of a creative financial plan for your own financial security and to meet your goals.
Let’s face it pensions are usually seen as complex and boring – hardly a recipe for engagement. But to us, they are exciting and vibrant. Pensions are the “Hey Presto!” of financial planning – often being the key to magically making money appear and taxes disappear. Pensions generally allow you to get tax back when you contribute and get a tax-free or tax-preferred return. They can also be a huge force for good when aligned to our impact investment portfolios.
Take control of your money and invest it in-line with your ethical beliefs and tailored risk level.
The Path makes combining your pensions into a single pot simple.
What are defined benefit and defined contribution pensions?
Defined benefit pension schemes are usually workplace pensions arranged by your employer. They’re sometimes called ‘final salary’ or ‘career average’ pension schemes. The pension provider will give you a certain amount each year when you retire.
Defined contribution pension schemes are usually either personal or stakeholder pensions. They’re sometimes called ‘money purchase’ pension schemes. How much you will receive depends on how much was paid in and how well the investments have performed.
What is the State Pension?
The precise age you become entitled to the State Pension depends on when you were born. You can check your State Pension age on the HMRC website here.
You will pay tax on your pension if your total income (including work, income from property, private and State Pensions) is more than your annual tax-free allowance. Personal allowances change each year and are dependent on age.
What are personal and private pensions?
A private pension, sometimes referred to as a personal pension, is a product that you can use to save money for retirement. These are usually defined contribution pensions, which means the money you receive at retirement is based on the money you’ve paid in and the performance of your investments.
The Path can help you consolidate your pensions into a new ethical pension plan.
What is a workplace pension?
A workplace pension is a way of saving for your retirement that’s arranged by your employer. Usually both you and your employer have to pay into it under Auto Enrolment rules.
What are drawdowns and annuities?
Pension drawdown keeps your pension invested, and provides you with the flexibility to dictate your retirement income. The amount you receive will be determined by the fund’s performance and your needs.
A pension annuity works in a similar way to an insurance product and pays out a guaranteed income for a fixed term or until death. When you retire an annuity can be bought using some or all of your pension savings.
How do I find and transfer a pension?
How can I find my pensions?
The Pension Tracing Service: https://www.gov.uk/find-pension-contact-details
How long does it take to transfer a pension?
Typically, it can take around 8 weeks for a pension transfer to complete. In some cases, this can be as long as 12 weeks.
The Financial Services Compensation Scheme (FSCS) is the UK’s compensation fund for customers of authorised financial services firms. It is an independent compensation scheme set up under the Financial Services and Markets Act 2000 (FSMA), and individuals can use it when a financial services firm is unable to pay claims made against it. For more information, you can visit their website here.
The Pensions Ombudsman
An independent organisation set up by law to investigate complaints about pension administration. They can also consider complaints about the actions and decisions of the Pension Protection Fund and about some decisions made by the Financial Assistance Scheme. For more information, you can visit their website here.
The Pensions Regulator
The Pensions Regulator (TPR) is the UK regulator of workplace pension schemes, ensuring that workplace pension schemes are run properly so that people can save safely for their later years. For more information, you can visit their website here.
The Pensions Advisory Service
Offering free and impartial guidance to people with workplace and personal pensions. For more information, you can visit their website here.
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
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The Path Financial Ltd. Registered in England. Company No. 11583740. Registered office address: The Path Financial Ltd, Watch Oak, Battle, TN33 0YD
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The Path is entered on the Financial Services Register https://register.fca.org.uk under reference 827270.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.
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