The majority of people in the workplace have a pension from their employer’s opt-out pension scheme. However, there are some elements of their retirement fund that employees do not know about, especially in terms of potential changes to their employment status. If you want to know anything about your pension and your rights when it comes to employment and financial status, read on to discover the key information behind your pension.
What to do if you are made redundant
Redundancy can be a traumatic and financially devastating experience, even when you receive redundancy pay. However, there are ways that you can still provide for your family and your future after you have been made redundant. Your pension is very important to consider when you have been made redundant, as redundancy gives you the freedom to decide whether you want to continue to pay into it, transfer it to another fund, or use some of your redundancy payment to add to your pension. If you believe that you are financially stable enough to do so, you can ask your employer to donate your redundancy pay packet to your retirement fund in replacement of an employer contribution. However, you should ensure that this does not push you over your annual allowance if this is the case, or else you may find yourself with a large tax bill. However, if you are looking for a new career path and you are interested in the complexities of pensions, you should consider a financial career. Have you ever thought about a career as a financial advisor? Visit Portafina’s Job site to find out if it would be the right job for you.
In the event of bankruptcy
If you have been made bankrupt, this can affect all areas of your finances, including the financial planning that you have put into your future. When you have been made bankrupt, the possibilities change accordingly to the date of your bankruptcy. If you were made bankrupt before May 29th, 2000, then the Trustee of Bankruptcy will have been given your assets by the government, and this will be used to contribute towards paying off the debts that made you declare bankruptcy. However, if you have been made bankrupt after this date, including more recently, then your pension is an asset included in those which should be protected by your Trustee. The only other difference is in that the Trustee can now recover funds which they claim to be an excessive amount which has been paid in unusual circumstances. Additionally, you can request to recover the pension for a limited period from the Trustee out of court.
If you decide to work part-time
The number of hours you work changes over time, and if you choose to work part-time, you will want to know whether this affects your pension. If you work part-time, the process is the same as it would be for full-time employees, and your employer has to offer you a pension scheme by law. Your employer then matches your monthly contributions, which comes straight out of your paycheck before it reaches your bank account.
To find out more information and check that your pension is secure, follow Portafina on social media at @portafina_uk, Facebook, YouTube and LinkedIn.