It is a generally calculated fact that an individual normally spends about 20 years as a retiree. However, during this period life must go on and there are expenses to be met. For people enjoying a government pension there are hardly any worries. But, this is far and few in between. The vast majority have no option but to make their own arrangements. Hence, for people employed in the private sector, opting for a legal pension scheme is the best solution. Earlier there were problems. However, with the auto enrollment pension policy being introduced in a phased manner there are no further worries.
Under the policy any person who is above 22 years old and has been working for the last 3 months must be enrolled for this pension scheme. It is the bigger companies employing large number of people, who have to implement the policy first. For smaller firms employing less than 500 people, the start date should be any time the year 2014. Prior to 12 months before the exact start date, the pension regulator has to inform in writing that from a specific date, the system should be in place.
Now the next step is the all important job of choosing a pension fund. There are plenty of names in the market. However, the trick is to buy from an experienced firm in handling money and that has been delivering great returns. The future is quite uncertain as nobody has a perfect idea regarding the cost of living at that time. It is here these reputed names can be trusted to help. Most of them have the experience and have it in them to offer quality advice in this regard. Moreover, they also monitor the fund growth closely and act as and when required. Working with reputed names is a great experience and one should relish it.
While all this is fine it is essential to focus on the premium amount to be paid. Under the enrollment pension policy, a minimum percentage that has to be set aside is fixed. Contributions have to come from both employee and employer. In the initial stages it is 3% of the salary. 2% is the employees responsibility, while the employer contributes 1%.However, by October 2018 the minimum target is 8% of the salary. The minimum employer contribution is fixed at 3%. The rest is the lookout of the employee. The system is quite easy. On every pay day the amount is deducted and transferred to the pension fund.
The pension schemes should just not be limited to people with salaried jobs. Everyone requires some security at a later stage of life. So, even business partners or people involved in providing services such as doctors or lawyers should have a plan in place. On such instances one must consult professionals who are there to see that a proper retirement pension plan is in place. Moreover, it is not restricted to an individual. One should also care for spouse. Hence, one must look into options of pension for law partners. However, before proceeding further there is a need to be aware of the legal issues in this regard.
For a married people or someone under a civil agreement, the term partner is not applicable. It is only for a cohabiting partner. However, the law says that someone who has retired before 1st April 2008 will not be able to nominate partners to receive a pension. It is only people who have retired after that can nominate their partners. There are no issues related to same sex partners. The partner can be of the same sex or different sex. As long as both partners have been living together as a couple, there should be no worries. However, nomination is a necessary. If the nomination is not done, a life partner will not enjoy the pension benefits. It does not matter how long they may have lived as partners.