Pensions Advice Wales
10.21.09
Pensions Advice Wales
There are three types of pension, listed below: For further independent advice go to http://pensionsadvicewales.co.uk/site/
Types of pensions
Employment-based pensions (retirement plans)
A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both the employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. Funding can be provided in other ways, such as from ent agencies, or self-funded schemes. Pension plans are therefore a form of “deferred compensation”.
Social / state pensions
Many countries have created funds for their citizens and residents to provide income when they retire (or in some cases become disabled). Typically this requires payments throughout the citizen’s working life in order to qualify for benefits later on. A basic state pension is a “contribution based” benefit, and depends on an individual’s National Insurance (NI) contribution history.
For examples, see National Insurance in the UK
Disability pensions
Some pension plans will provide for members in the event they suffer a disability. This may take the form of early entry into a retirement plan for a disabled member below the normal retirement age.
Tags: retirement plan
