Pensions have provided a source of much news coverage in the last year. It is clear that fewer people in the future will have access to 'defined benefit' pensions related to the number of years that they work for a firm and their final salary. In future clients will have more choice over their pension contributions and from April 6th 2006,

'A' day, the rules determining how much can be contributed to a pension plan on an annual basis became much less restrictive.

Self Invested Personal Pension Plans

Many high earners will find the option of having more control over their pension funds highly attractive. A wrapper known as a Self Invested Personal Pension provides an ideal vehicle for those who would like control and flexibility over their pension investment.

Full Concurrency

Since April 6th 2006 employed people with high earnings will be able to make contributions to their own Personal Pension Scheme. This means that they will be able to build up benefits outside the main scheme provided that these contributions do not take then over the lifetime allowance (£1.6million in 2007). This has opened up an exciting area for high earning individuals who will not be eligible for full benefits from their scheme and who have previously suffered from the earnings cap. Self Invested Personal Pensions are likely to be particularly appropriate in these circumstances.