Pension Schemes And Its Uses

A defined pension plan is a saving plan for the long term. It's also a tax-efficient means to conserve money over the course of your working days. You can save a portion of your income every day during your career.

The dorset allowance fund is part of the national Local Government Pension Scheme (LGPS). If you join the scheme and stay in it for at least 2 years, you will get a pension paid to you when you retire.

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There are many pension schemes that are available today. You have the choice of choosing which pension scheme you want to enroll yourself into.

1. Basic State Retirement Pension

As the name suggests, it is the most basic of all retirement pension schemes. This is given to all employees who have given a considerable contribution to the National Insurance or have the required credits at the time of their retirement age. 

2. Additional Pension

As the name suggests, it is an addition to the primary and basic pension plan. According to the earnings you have, you will be eligible for an increase in the pension from what you get from the basic state retirement pension plan. 

But in order to avail of this, the employees should contribute extra to this pension plan. That is if they are not contributing already to an occupational pension plan or a personal one.