Occupational pensions, as the name suggests, are set up by employers.

They provide pensions and life assurance benefits for employees.

There are two main types of occupational pension scheme:

Final salary

The pension is a proportion of your salary at or near retirement, and is linked to the number of years you have worked for that employer.

Money purchase

The pension is based on the total value on retirement of the money paid into the scheme and on how the underlying investment has performed. Since 6 April 2001, some of these have been stakeholder pensions. Occupational schemes are usually better than personal pensions since they typically include a contribution from your employer as well as from you, boosting the eventual value. As an employee, you have the right to leave, or not to join, an occupational pension scheme. However, if you're thinking of doing so, we recommend you get independent financial advice first so that you can be sure that you're choosing the right option.

Contact us today for occupational pensions advice.