• Contact us
  • About us
  • Digital edition
  • Online archive
Tuesday, June 17, 2025
Cumberland and Westmorland Herald
  • News
    Penrith man admits possessing cannabis twice with intent to supply

    Penrith man admits possessing cannabis twice with intent to supply

    Risks and strategies for flexible pension drawdown

    Risks and strategies for flexible pension drawdown

    Man arrested after fleeing from police in Penrith

    Man arrested after fleeing from police in Penrith

    £37.7 million to tackle potholes and upgrade roads

    £37.7 million to tackle potholes and upgrade roads

    Over £38,000-worth of fake goods seized at Appleby Horse Fair

    Over £38,000-worth of fake goods seized at Appleby Horse Fair

    New bid for Appleby stallion sculpture revealed

    New bid for Appleby stallion sculpture revealed

    18th century Eden pub sold as owners retire

    18th century Eden pub sold as owners retire

    Tebay’s plans for battery storage unit

    Tebay’s plans for battery storage unit

    Pub landlord must remove Covid canopy

    Pub landlord must remove Covid canopy

  • Sport
    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    Penrith man admits possessing cannabis twice with intent to supply

    Penrith man admits possessing cannabis twice with intent to supply

    Risks and strategies for flexible pension drawdown

    Risks and strategies for flexible pension drawdown

    Man arrested after fleeing from police in Penrith

    Man arrested after fleeing from police in Penrith

    £37.7 million to tackle potholes and upgrade roads

    £37.7 million to tackle potholes and upgrade roads

    Over £38,000-worth of fake goods seized at Appleby Horse Fair

    Over £38,000-worth of fake goods seized at Appleby Horse Fair

    New bid for Appleby stallion sculpture revealed

    New bid for Appleby stallion sculpture revealed

    18th century Eden pub sold as owners retire

    18th century Eden pub sold as owners retire

    Tebay’s plans for battery storage unit

    Tebay’s plans for battery storage unit

    Pub landlord must remove Covid canopy

    Pub landlord must remove Covid canopy

  • Sport
    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

    Lucy plays key role in county T20 triumph

    Lucy plays key role in county T20 triumph

    Gold for Keith in annual festival of orienteering

    Gold for Keith in annual festival of orienteering

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
No Result
View All Result
Home Expert advice
This article appears as part of a paid partnership with Armstrong Watson

What type of pension do you have?

By Nick Birtle, financial planning consultant, Armstrong Watson

by CWH
6 September 2023
in Expert advice, News
A A
Share on FacebookShare on Twitter
Nick Birtle, of Armstrong Watson

There are many different types of pension that you might come across, but the majority typically fall into one of these: Defined Contribution (DC), or Defined Benefit (DB).

It’s worth understanding the basics of how these work, as it will have an impact on the options available to you, as well as how you plan to access your retirement benefits when you are ready to retire. 

Defined Benefit pension (final salary)

These pensions are becoming increasingly rare, unless you are a government employee, or work in the NHS, fire service, police or armed forces, but they offer valuable benefits for those in the scheme.

They are schemes that run through an employer, where you accrue benefits based on your earnings, length of service and membership in the scheme.

They offer a guaranteed income for life, and usually the option of a tax-free cash lump sum. The age at which you can take benefits is set by the scheme and is typically 60 or 65.

Defined Contribution pension (personal/workplace pension)

This pension is based on contributions set up by you, or through your employer.

If you are in employment you will have been automatically enrolled into your employers’ scheme, unless you opted out, or are under the age of 22, or have earnings of less than £10,000. They work by paying a known amount of money into a pension, typically monthly, by you or possibly your employer, or both.

These contributions are invested into investment funds that will hopefully grow over time, up until your retirement. Your pension contributions will receive tax relief from the Government.

The amount of pension capital that you eventually have for retirement will depend on how much you’ve paid in, how your pension funds have performed, and any charges applied.

There are multiple types of DC pension schemes, one of the most common being a Self-Invested Pension Plan (SIPP), and schemes such as Group Personal Pensions, Executive Pension Plans and Retirement Annuity Contracts.

State Pension

The UK State Pension is the pension that the Government pays most of us when we reach 66, or 67 after 2028.

At the moment, it pays:

  • £203.85 per week or £10,600.20 per year

To get the full amount, you will need 35 qualifying years of contributions for National Insurance (NI) credits. You can’t claim the State Pension if you’ve paid in for less than 10 years.

If you don’t have a total of 35 qualifying years, the Government will base your payments on how many years you have paid it for. You get 1/35 of the full amount for every year you’ve paid in. For example:

  • 30 years gives you 30/35 x £203.85, which is £174.72 a week
  • 10 years gives you 10/35 x £203.85, which is £58.24 a week

You might be able to top up any NI gaps by paying voluntary contributions and can find out more about the State Pension and check your eligibility on www.gov.uk.

Achieving what you want

The Retirement Living Standards set out by the Pensions and Lifetime Savings Association suggests that in retirement a couple would need £19,900 per year as a minimum living standard, £34,000 to live moderately and £54,500 to live comfortably.

There are fewer and fewer people who will benefit from generous defined benefit schemes, and more and more of the UK population are having to rely on saving into a personal pension (defined contribution) scheme.

As a couple’s combined State Pension is just above the minimum lifestyle discussed earlier, saving for the retirement you want is crucial.

If you have accumulated pension benefits and want advice on how these might support your retirement plans please get in touch.

Email nick.birtle@armstrongwatson.co.uk or call 01768 222031.

For more information please visit our pension and retirement planning pages

Related Posts

Penrith man admits possessing cannabis twice with intent to supply
Latest

Penrith man admits possessing cannabis twice with intent to supply

17 June 2025
Risks and strategies for flexible pension drawdown
Expert advice

Risks and strategies for flexible pension drawdown

15 June 2025
Man arrested after fleeing from police in Penrith
News

Man arrested after fleeing from police in Penrith

13 June 2025
£37.7 million to tackle potholes and upgrade roads
Latest

£37.7 million to tackle potholes and upgrade roads

13 June 2025
Over £38,000-worth of fake goods seized at Appleby Horse Fair
News

Over £38,000-worth of fake goods seized at Appleby Horse Fair

13 June 2025
New bid for Appleby stallion sculpture revealed
News

New bid for Appleby stallion sculpture revealed

13 June 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

Risks and strategies for flexible pension drawdown

Risks and strategies for flexible pension drawdown

15 June 2025
Celebrating 200 years of Nenthead

Celebrating 200 years of Nenthead

13 June 2025
Flower fairies of Kirkby Stephen brighten people’s day

Flower fairies of Kirkby Stephen brighten people’s day

13 June 2025
Take a walk down memory lane

Take a walk down memory lane

13 June 2025
Man arrested after fleeing from police in Penrith

Man arrested after fleeing from police in Penrith

13 June 2025
Pub landlord must remove Covid canopy

Pub landlord must remove Covid canopy

13 June 2025
Cumberland and Westmorland Herald Logo

33 Middlegate
Penrith
Cumbria
CA11 7SY

Phone: 01768 862313
Email: news@cwherald.com

Registered in England as Barrnon Media Limited. No: 12475190
VAT registration number: 343486488

Explore

  • News
  • Sport
  • Farming
  • Property
  • Obituaries
  • Nostalgia
  • Your view

Useful links

  • Contact us
  • Photosales
  • Online archive
  • Buy your paper
  • Digital edition
  • North Lakes Living
  • Advertise
  • About us

Follow us on

© Barrnon Media Limited 2025

Terms & Conditions / Privacy Policy / Cookie Policy

This website and its associated newspaper are members of the Independent Press Standards Organisation
Review Your Cart
0
Discount
Add Coupon Code
Subtotal
Total Installment Payments
Bundle Discount
Checkout

 
0
No Result
View All Result
  • Home
  • News
  • Sport
  • Obituaries
  • Nostalgia
  • Online archive
  • more
    • North Lakes Living
    • Buy Photos
    • Buy your paper
    • About us
    • Contact us

© 2020 Cumberland & Westmorland Herald