Throughout our lifetime, it is unlikely that you will hold the same employment position or avoid all financial issues possible. However, changes to your employment can run smoothly in terms of your pension if you obtain the correct knowledge in advance and know what to do in the case of an emergency. This article will detail the possible changes and employment issues you may encounter throughout your life and how to combat these to secure your pension.
Becoming bankrupt is collectively one of the largest financial fears that we can have. However, bankruptcy does not have to be scary in terms of your pension as long as you know the relevant laws and regulations surrounding it. If you have become bankrupt before May 29th, 2000, the government will have taken your assets and handed them to your Trustee in Bankruptcy (TIB), who will have used them to pay off your debts. This includes your pension. However, if you have become bankrupt after May 29th, 2000, your TIB can protect your assets against any claim made against them. Although this is true, your Trustee can also apply to the court to obtain any excess assets that were made previous to the event, such as unusually high contributions, and you can get an agreement with your Trustee to give you part of your pension for a short period.
Being Made Redundant
Redundancy is not uncommon, especially in uncertain modern times. However, being made redundant does not mean that you have to worry about your pension, even those that were founded in the workplace. Instead, being made redundant simply gives you several choices on the best way to handle your pension in the future. Some of these include transferring your available pension into a different scheme, either privately or relating to a new job. You can also use some of your redundancy pay to contribute to your pension fund, as long as this does not push you over the edge of your annual allowance, or ask your employer to perform a redundancy sacrifice and contribute some of your pay as an employer contribution into your pension.
Going Part Time
There are many reasons why people choose to enter part-time employment, and you should not have to take your concerns about your pension into consideration when making this choice. At Portafina we know pensions can be confusing, if you have any questions please visit our website. Luckily, if you go part-time, this will have little to no impact on your current pension or the options that you have with it. Like full-time employees, you will be included in your workplace pension scheme and can make voluntary and compulsory contributions, adding to those of your employer. However, you should take into consideration that the percentage of the money you will be contributing may be less than when you worked full time, and so your pension will not grow at the rate that it did previously.