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PLANNING FOR RETIREMENT

Occupational Schemes

Inland Revenue rules allow you to invest 15% of your annual salary into an occupational scheme - that includes the value of any taxable benefits you receive such as company car, bonus or medical insurance

The Sunday Times argue that almost everybody offered a company scheme should join. Your employer normally makes extra contributions on your behalf, helping to boost the fund.

Company schemes fall into two categories:

Final salary schemes: Your pension will be based on your salary at retirement. You normally earn 1/60ths of final salary for every year's service, up to a maximum of 40 years, or two-thirds of final salary.

Money-purchase plan: Your contributions, and those of your employer, are invested in a range of tax-free equity and gilt funds. Your investment pot at retirement is used to buy an annuity.

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REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.