Pensions

Pensions provide a safety net when you are too old to earn a living. Pensions are important when you retire, it gives you a set of funds regularly after retirement so that you can pay your bills and continue to do the things you love. The self-employed can create a Personal or Stakeholder Pension. They can come in a variety of forms and you should take professional advice from an insurance specialist to create the ideal plan for you. Lestons have no desire to enter the pensions market and as such we will simply explain potential options and suggest you speak to a specialist provider.

 

Personal Pensions

Personal pensions are where you save money by making a contract (a legal agreement that binds two or more parties) with a pension provider. You may then put money into the pension, which is used as capital for investments. The more money that you put into the pension, the greater amount you will be able to withdraw once you have retired in the way of profits from the investments.

 

Purchasing shares

As an alternative, or in addition to pensions some people buy shares in companies and receive dividends (money from each share), there may be tax implications between pensions and dividends, again you should seek professional advice from a specialist in this regard. Purchasing share can offer an interesting option but the similarities between it and gambling are obvious, in addition there can be “crashes” which can greatly reduce share values. Ultimately it will depend on your attitude to risk.