Halifax has contacted customers directly via email about pensions. The bank emphasized that the amount customers receive back from a pension is not guaranteed and can fall as well as rise, with the possibility of receiving back less than the sums originally paid in. Halifax also cautioned that a ready-made pension or Self-Invested Personal Pension (SIPP) may not be suitable for everyone and a personal pension is not a replacement for a workplace pension.
Halifax stated that workplace pensions should be prioritized first, especially since employers contribute, but personal pensions can be ideal for those maximizing employer benefits or with additional savings. Halifax offers two flexible pension options: a ready-made pension and a SIPP. The ready-made pension is overseen by specialists, emphasizes growth when retirement is distant, adopts lower risk as retirement approaches, and can be monitored and supplemented via Halifax's mobile banking app.
You may already have a workplace pension - but is it enough? Happy new (tax) year! It's a fresh chance to use your annual pension allowance and keep more of what you earn. With tax relief, your pension can grow faster, making it one of the smartest ways to save for later life.
A SIPP gives customers full control over investment choices and pension withdrawal methods. Halifax recommends speaking to a financial adviser if unsure, noting that advisers normally charge for their advice. Pensions are a long-term investment and cannot typically be accessed prior to retirement.
It is unknown how many customers Halifax contacted directly about pensions or the specific criteria for its pension options. The exact fees and performance history of these products have not been disclosed.
Pay £1,000 into your personal pension and it will become £1,250 with tax relief. 20% basic rate tax relief is automatically applied for everyone. That's an extra £250 added, without you earning a penny more.
Your workplace pension's always your first stop, especially because your employer adds money too. But if you've already got the most out of your employer, or have additional income you want to save, a personal pension can be ideal.
may not be suitable for everyone and a personal pension isn't a replacement for a workplace pension offered by your employer. If you're unsure, we'd recommend that you speak to a financial adviser who would normally charge for their advice