Occupational Pension

final salary, in which the pension is a proportion of your salary at or near retirement date and is linked to the number of years you have worked for the particular employer; or

money purchase, in which the pension is based on the total value on retirement of the money paid into the scheme and on how the investment has performed.

Reid, Scott and Ross is one of the UKs leading Independent Financial Advisers. We provide pension advice to both individuals and companies on all aspects of financial planning, through a long term approach of fully understanding our clients' needs, wants and aspirations and then prioritising objectives. It goes without saying that companies require specialist financial planning advice and Reid, Scott and Ross have specialists in this area who advise Companies on a number of different financial planning areas.  Too many companies leave this aspect of their business to chance risking their business in the process. Expertise is needed to plan around corporate tax requirements and any implications that arise. Companies have many specialist needs including business protection, partnership & key person protection and employee benefit schemes.

As an employee you have the right to leave, or decline to join, an occupational pension scheme. If you are thinking about leaving an occupational pension scheme, you should consider the implications of this very carefully, because an occupational pension scheme will usually be far more advantageous than a personal pension scheme. In addition, an occupational pension scheme may be reluctant to allow you to return to the scheme after you have left to take out a personal pension. If you decide to leave, or decline to join, an occupational pension scheme, you will then have to contribute towards additional pension or a personal pension.

If you are thinking about leaving a personal pension scheme, you should get independent financial advice first.

The occupational pension scheme may be contracted out of additional pension, which means you will not pay contributions into additional pension and will only be entitled to a basic state retirement pension plus an occupational pension on retirement.

If the scheme is not contracted out of additional pension you will continue to pay into additional pension and will be eligible for the basic retirement pension plus additional pension plus an occupational pension on retirement.