3 COMPANY AND PRIVATE PENSIONS

Company pensions

Company pension schemes may be either contributory or non-contributory, although these days more likely the latter. When you reach retirement or any previously agreed age, you will be entitled to receive the pension according to the rules and regulations of the scheme. Your company‘s personnel or human resources department will be able to give you all the necessary details.

You may have worked for several employers during your working life and have lost track of some of the pensions they have built up over the years. To trace a pension contact the Pension Schemes Registry on (0191) 225 6313 and they will send you a form Tracing Your Old Pension; fill it out and return it to them and there is every chance that they will be able to help you.

Private pensions

As with company pensions, the amount you receive will depend upon the scheme and how well your contributions have been invested by the pension company. You will probably be able to take your pension in part or in total as a lump sum. This is a decision you must make for yourself.

Taxation

It is important to remember that income you receive from company and private pensions and other sources, excluding any state pensions and benefits, may mean that you have to pay income tax if the total exceeds the allowances. For the tax year 2000-2001 the Personal Age Allowance for anyone between 65 and 74 is £5,790 and over 75 is £6,050. The income limit is £17,000.