Call Us Now
01228 882 880
Call Us Now
01228 882 880
Every payday, a percentage of the employee’s pay is deducted automatically from their salary or wages and invested in the scheme. The employer also contributes to the scheme on the employee’s behalf as does the government in the form of tax relief.
In a ‘defined contribution scheme’, the employee’s retirement income is based on the contributions made, whereas in a defined benefit scheme, the employee’s pension income is based on his or her salary and length of service with the employer. Most occupational pension schemes are defined contribution schemes.
Most defined contribution schemes are managed by insurance companies not the employer, so employees’ pension pots should not be affected. If the scheme is a trust-based scheme, employees will still get their pensions, although not as much because the scheme’s running costs will be paid out of members’ pension pots rather than by the employer.
Under ‘Automatic enrolment’ rules, any employer (with at least one member of staff) must automatically enrol every employee between the age of 22 and State Pension age and earning in excess of £10,000 a year (2020/21) into a 'Workplace pension scheme'.
The minimum contribution for employers is 3% of the employee’s earnings, whilst employees are obliged to contribute at least 4% or 5% of their earnings before tax, depending on the scheme criteria.
THE PENSIONS REGULATOR IS THE STATUTORY REGULATOR FOR WORKPLACE PENSIONS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE AUTO ENROLMENT AND OCCUPATIONAL PENSIONS.
A DEFINED CONTRIBUTION PENSION IS A LONG TERM INVESTMENT, THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.
Value | Move | % |
FTSE 100 | ||
6567.37 | -86.64 ![]() |
-1.302 ![]() |
FTSE 250 | ||
20278.35 | -170.051 ![]() |
-0.832 ![]() |
FTSE 350 | ||
3740.98 | -46.17 ![]() |
-1.219 ![]() |
FTSE All Shares | ||
3716.37 | -45.27 ![]() |
-1.203 ![]() |
Dow Jones | ||
30303.17 | -633.83 ![]() |
-2.049 ![]() |
Nasdaq | ||
13270.598 | -355.467 ![]() |
-2.609 ![]() |
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks. ...
Read moreHealth Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious long-term financial implications for you and your family. ...
Read moreThe main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. ...
Read moreYour mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is individually tailored ... ...
Read moreWhen you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed ... ...
Read moreWhen someone talks about savings and saving money, it could be referring to a piggy bank or a high interest deposit account. Savings are effectively cash or cash instruments ... ...
Read moreMost of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die. Taxation can be very complicated and the rules, reliefs and allowances ... ...
Read moreThis is an area of financial planning that is often overlooked. Traditionally, we have our buildings and contents insurance with our mortgage lenders, which may be uncompetitive ... ...
Read moreProfessional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions ... ...
Read moreIf you're over the age of 55, equity release offers you a way to use the value of your home to raise money. There is a range of equity release schemes available on the market offered by ...
Read moreCurrencies
Value | Move | % |
GBP/EUR | ||
1.13012 | -6.997585E-5 ![]() |
-0.0061915126 ![]() |
GBP/NOK | ||
11.86311 | 0.03292942 ![]() |
0.27835098 ![]() |
GBP/SEK | ||
11.44657 | 0.00097084045 ![]() |
0.008482216 ![]() |
GBP/USD | ||
1.3680452 | -0.0010863543 ![]() |
-0.07934836 ![]() |
CONTACT US
CMD Financial Solutions Ltd
39 Lowther Street
Carlisle
Cumbria
CA3 8EP
T: 01228 882 880
F: 01228 882 889
Email Us
CMD Financial Solutions Ltd is an appointed representative of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority. Openwork Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 408285.
The information on this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
Registration Address: 39 Lowther Street, Carlisle, Cumbria CA3 8EP
Registration number: 06650508 - Registered in England & Wales
© Copyright 2021 - WEBPRO Adviser - All Rights Reserved