Bp Case Study 2
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- Date Submitted: 03/12/2011 04:43 AM
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It is very impo[1]rtant to start thinking about the pension as soon as possible. There are various pension schemes that one should consider in order to achieve the desirable objectives.
State Pension
The State Pension scheme is financed and systematized by the UK government. The individuals must work in the UK and can build up the State Pension before they are given the right to any pension. This type of the pension scheme is available to everyone who has donated an adequate[2]e amount of National Insurance for a sufficient number of years. The individuals who work and receive more that £97.65 per week are entitled to pay National Insurance. However if one gets less that £97.65 per week does not need to pay National Insurance, but in the case of having other benefits, one will still receive the basic state pension. It is recognized that each year of that payments accounts as a qualifying year. This pension scheme is presently boosting with the inflation, based on the retail price index.[3]
The state pension scheme requires for men to be 65 years old, while for women it is 60. However from 2010 to 2018 the pension age for women will increase to 65 and by the 2020 the pension age for men and women will raise to 66.
Occupational Pension Scheme
Occupational pension scheme are recognized to be funded or unfunded. Unfunded schemes are designed for the obtainable pensioners and can be taken from the current contribution. Funded schemes function by creating a investment fund in to which constitutions are made. In the UK 25% of benefits contributed can be seen as a tax-free at retirement.
An occupational pension scheme is usually set up by the employer in order to provide the pension for the employees. The UK law does not oblige the employee to contribute toward his pension, however usually the contributions are made by the employer and the employee. [4] All the employers’ contributions are taxable and employee can contribute p to 100% of taxable earning....
State Pension
The State Pension scheme is financed and systematized by the UK government. The individuals must work in the UK and can build up the State Pension before they are given the right to any pension. This type of the pension scheme is available to everyone who has donated an adequate[2]e amount of National Insurance for a sufficient number of years. The individuals who work and receive more that £97.65 per week are entitled to pay National Insurance. However if one gets less that £97.65 per week does not need to pay National Insurance, but in the case of having other benefits, one will still receive the basic state pension. It is recognized that each year of that payments accounts as a qualifying year. This pension scheme is presently boosting with the inflation, based on the retail price index.[3]
The state pension scheme requires for men to be 65 years old, while for women it is 60. However from 2010 to 2018 the pension age for women will increase to 65 and by the 2020 the pension age for men and women will raise to 66.
Occupational Pension Scheme
Occupational pension scheme are recognized to be funded or unfunded. Unfunded schemes are designed for the obtainable pensioners and can be taken from the current contribution. Funded schemes function by creating a investment fund in to which constitutions are made. In the UK 25% of benefits contributed can be seen as a tax-free at retirement.
An occupational pension scheme is usually set up by the employer in order to provide the pension for the employees. The UK law does not oblige the employee to contribute toward his pension, however usually the contributions are made by the employer and the employee. [4] All the employers’ contributions are taxable and employee can contribute p to 100% of taxable earning....