Pensions

What is a pension?

A pension is simply a savings pot which you cannot access until you retire. The money is invested in order to grow faster than inflation can erode its value. When you pay into your pension, HMRC will gross up the amount by 20% so when you pay in £80 an extra £20 is added. When you retire you use the fund to buy an annuity.

For more information on how Pensions work, the type of pensions available and the choices you have, we recommend you visit FSA Website www.MoneyMadeClear.fsa.gov.uk.

Why use Cavendish Online?

Cavendish Online reduce the charges applied to your pension plan.

We charge a one-off £35 fee to set up your Stakeholder or Personal Pension and we are not paid commission by the pension provider. All the Commission we would have received stays invested in your funds and this reduces your Annual Management Charge (AMC) for the life of the plan.

The only ongoing charge applied to a pension is the Annual Management Charge (AMC), part of which is used by your pension provider to pay commission to your IFA or broker. The AMC is usually around 1% but Cavendish Online does not take any commission from the pension provider, who reduces the AMC, meaning more money in your pension pot at retirement.

This will significantly increase the value of your pension at retirement. For examples click here.

If you already have a pension you can still benefit!

If you set up a new pension plan via Cavendish Online we can arrange to transfer your existing pension(s) into the new plan. This will reduce the ongoing Annual Management Charge on those funds as well, not just on your new contributions. We cannot change the AMC on your existing pension plan. That AMC was fixed by the original adviser when the pension was opened. So to get our discount you must move the existing fund into a new pension plan set up by Cavendish Online with our discount applied. Please see Pension Transfers & Repensioning for more details.

Also available through Cavendish are the Fidelity SIPP and the Standard Life Immediate Vesting Personal Pension.