Growing the pension pot
Clients can make their own contributions to the plan, and possibly arrange for their employer to contribute as well.
If needed, you can help them arrange a pause in payments when the demands of life take their toll. Although it is always wiser to maintain regular payments, the Fairway Jersey Personal Pension Scheme is flexible enough to allow to easily change contributions according to circumstances.
Clients can transfer funds from other approved pensions in order to consolidate them into one easily-managed plan. This way, they will have a much better understanding of exactly where their hard-earned savings are being invested. Both you and your clients will also be able to know how much you have saved by accessing your account securely, online.
As ever, it is unwise to enter the world of pensions without help. The Fairway Jersey Personal Pension Scheme has been designed to be provided by Jersey-based financial advisers. As an adviser, you will work to ensure that the FJPPS is the right pension plan for your clients.
FJPPS can be invested in funds that include a variety of asset classes, such as shares, property, government bonds and cash. The choice of investments will be influenced by the amount you need to retire on, the amount you can afford to save, your attitude towards risk, and the length of time you have before you plan to retire. Your adviser will explain all of these investment choices in detail, including the level of risk and growth potential associated with each asset class.
We also recommend an annual performance review of a client’s pension plan. We see this as a key service and the opportunity to ensure there will be no surprises for your client when they do retire. It is also a good time to to take account of any changes in their personal circumstances.
Worst case scenario – plan for your family’s future needs
It happens to everyone so it’s best to be prepared for it.
In the event that your client dies before retirement, the Fairway Jersey Personal Pension Scheme will cease and the entire proceeds of the pension plan will pass to the beneficiaries nominated in the application form, tax free.
If they die after retiring, the pension plan will cease and the entire proceeds of your pension plan will pass to the beneficiaries nominated in your application form, net of tax. This tax charge will be at the standard rate of Jersey income tax. This is dependent on the client’s choice going into retirement as discussed in “Why the Fairway Jersey Personal Pension Scheme”.
In the event that your nominated beneficiary is your surviving spouse, tax will be charged at half the standard rate of Jersey income tax.
Alternatively, the surviving spouse has the option to leave the FJPPS in place and continue to draw benefits from it. The estate will suffer tax at the standard rate of Jersey income tax when the surviving spouse dies.