Other Schemes

Some schemes relate the pension to your average salary over all your working life or pay you a certain amount for each year's service.

But these are rare.

More common are the so called 'money purchase' schemes which save up the contributions paid by you and your employer. These contributions are invested, usually in the stock market, and when you reach pension age the accumulated fund is used to buy you a pension. These schemes cannot make any guarantees about the amount of the final fund or the amount of the pension it will buy. They can be better or worse than final salary schemes.

But they are much more uncertain. These schemes are not generally contracted out of the state scheme and are quite common as schemes which top up the SERPS and among self employed people.

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or Early And Late Retirement

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Lump Sums

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