Commentary

32.1 Registered personal pension plans

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

32.1 Registered personal pension plans

| Commentary

32 Pension provision for sole traders and partners

32.1 Registered personal pension plans

The main type of pension provision available to sole traders and partners is to contribute to a registered personal pension plan (PPP)1. A PPP is an example of a money purchase or defined contribution scheme, which basically means that the investor pays contributions to a pension fund company, which then invests the contributions in order to build up a fund to provide an annuity or a cash lump sum together with a reduced annuity for the individual at retirement age. The amount of pension payable when the member

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