Defined Contribution Pensions
What is it? Let's set out what a defined contribution pension is – because the terminology is constantly changing. You may have heard a defined contribution pension referred to as a 'workplace pension'. Or it could be a 'money purchase' or just ‘private’ pension arranged by you. At its simplest, this is a pension pot in which you, your employer, or both of you, make contributions. The money you put in is then invested by the pension provider Why should I care about it? How much you get out of it depends on: How much was paid in How well the pension providers’ investment funds did And how you choose to take your pension (e.g. regular payment or lump sum) They seem like variable factors. And, frankly, they are. Each of these can make a huge difference in how much you get. Which is why you might wonder why bother to make tiny adjustments. (Or even why bother to set up one up in the first place.) Defined contribution pensions are an excellent way to save money, and get more out of your employer, for later life. But only if you know: "Is the right amount going in for me?” And “Is it being invested in the best way?" How could Profile help me get more out of it? Since 2013 we’ve helped over 11,000 customers switch their pensions for a better growth rate. We are experts in defined contribution pension schemes. And typically can help around 70% of pensions we review. Just to be clear, we aren't a pensions provider. We make our money from being a pensions adviser. So when you speak to one of our advisers they can genuinely give useful and impartial advice on the best defined contribution pension scheme for you. And we're also one of the biggest in the UK. So while talking to one of our pension advisers feels like talking to an IFA, it’s different. We have a wide view of every provider in the industry. Rather than the top 2 or 3 pensions schemes many independent IFAs stick to. We think choice matters as everyone’s pension needs are unique. With all those factors at play, you want the plan that balances things in your favour. Try us. If you don’t end the call feeling like you know everything there is to know about your defined contribution pension options…well you can email Simon.