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This is additional to their National Insurance contributions (which go towards the State Pension).

Employers now have to add 2pc, while the minimum for individuals’ contributions is 3pc.Savers who are persuaded to transfer their pensions to liberation schemes (before the age of 55) face losing more than half of their savings in tax penalties.But the court case could see liberation operations declared "invalid" pension schemes, which would in effect ban them from operating. What happens to your pension when you die Hargreaves Lansdown have excellent aricles to help you make decisions e.g.In fact there are some each year and they are 'lent' to the government to pay down the growing National Debt.What in fact happens to the billions of surplus cash is that it is 'invested' in government stock at a pitfil rate of return (normally less than the inflation rate.

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