Retirement Planning information from Barclays Stockbrokers - Contributing to your pension fund
Contributing to your pension fund

Contributing to your pension fund

There are many ways of paying into a pension fund and it’s likely that some may suit you more than others. If you’re unsure about the best method, you should speak with a tax specialist.

Here are some of the options available to you:
 
​Contributor ​Frequency ​Options
​Plan holder Regular savings

Usually you pay monthly by:
  - Direct Debit (set up by  pension provider)

  - Standing order (set up by plan holder).

You can also pay annually.

Your payments don’t include tax relief as this is added later.

When you start the plan, you get a 30-day cooling-off period. After that, your contributions are non-refundable.

Single premiums ​You can make one-off payments during any tax year.

Your payments don’t include tax relief as this is added later.

When you start the plan, you get a 30-day cooling-off period. After that, single premiums paid as increment to existing plans may have similar cooling-off period. This depends on the plan’s rules.
Consolidation payments Payments into your pension plan from other pension providers are normally called switches or transfers.

Each payment is seen as a new arrangement and there’s a cooling-off period of 30 days.

​Employer ​Regular savings

Usually paid monthly by
  - Direct Debit (set up by pension provider).
  - Standing Order (set up by plan holder).

Payments can also be paid annually.

All payments are made gross (the employer may claim Corporation Tax Relief on the payments).

The employer is not the plan holder and has no cooling-off rights. But when the plan starts, there’s a 30-day cooling-off period. After that, regular premiums are non-refundable.

Single premiums One-off payments can be made at any time, but they’re often linked to bonuses.

All payments are paid gross (the employer may claim Corporation Tax Relief on the payments).

The employer is not the plan holder and has no cooling-off rights. But when the plan starts, there’s a 30-day cooling-off period. After that, single premiums paid as increments to existing plans may or may not have similar cooling-off periods depending on the plan’s rules.

Third parties ​Regular savings

 Usually paid monthly by
  - Direct Debit (set up by pension provider)
  - Standing Order (set up by plan holder).

Payments can also be made annually.

Payments don’t include tax relief. 

The third party is not the plan holder and has no cooling-off rights. But when the plan starts, there’s a 30-day cooling-off period. After that, regular premiums are non-refundable.

​Single premiums ​One-off payments can be made at any time, but they’re often linked to bonuses.

Payments don’t include tax relief.

The third party is not the plan holder and has no cooling-off rights. But when the plan starts, there’s a 30-day cooling-off period. After that, single premiums paid as increments to existing plans may or may not have similar cooling-off periods according to the rules of these plans

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