Registered Schemes

Defined benefit arrangements

Also known as final salary schemes these schemes are determined by specified criteria and not dependant on a fund value, benefits are determined by specified criteria normally your years of service in the pension scheme and your final salary on retirement, and are not dependent on the amount of any fund.

Money purchase arrangements

Money purchase arrangements are also known as defined contribution schemes. The final fund value is dependent on the funds that you have built up and the performance of the funds within your pension scheme.  Most arrangements made by individuals are of this type, as are many company schemes.

These type of schemes come in various forms:

• Personal pensions
• Stakeholder pensions
• Retirement annuity contracts
• SSAS - Small Self Administered Schemes
• FSAVC - Free-Standing AVC schemes
• SIPP - Self Invested Personal Pensions

Benefits can be taken as lump sums and annuities, or as pension drawdown, new legislation has made how you take your benefits even more flexible so it’s important that you seek advice.