Saving for your retirement has never been more important and potentially never as challenging.
With the increase in our life expectancies coinciding with a low interest rate environment and the demise of high-quality final salary employer pension schemes, the burden falls on each of us individually to secure a comfortable future, and retirement planning has never been more important.
All employers must now provide a pension scheme for their employees which is a start. This is helpful to those who are employed but of course self-employed individuals still need to instigate their own pension savings.
Pension saving carries many benefits
Pension saving as part of your retirement plan is a very beneficial way to build a capital sum for your future with numerous attractions such as:
- Tax relief on personal contributions at your marginal income tax rate
- Investment growth free of income and capital gains tax
- Wide range of investment options to suit all circumstances
- Ability to access the fund from age 55 onwards
- Access the first 25% of the fund tax free
- Use the remaining 75% to buy a guaranteed income or leave it invested and drawdown income from the invested fund
- Assets held within the pension fund are usually exempt from inheritance tax
- Assets within the pension fund can be passed tax efficiently to your beneficiaries on death
Starting early and targeting an outcome
Your pension savings will almost certainly form the core part of your retirement income alongside your State Pension and other investments you may hold. We will work with you to look at the whole picture and build you a plan to target the income you require in retirement. Lifetime financial forecasting can also be a useful tool to understand how to achieve your future goals.
Making a start as early as possible will increase your chances of building a fund sufficient to meet your needs. We can help you explore how to make the most of your money through private pensions and other avenues such as investment.
At Retirement Planning
The new pension freedoms have transformed the pension landscape and have provided more choice than ever before in shaping retirement plans to best meet individual needs and circumstances.
Under the new rules, those aged 55 with a defined contribution pension (a pension based on how much is paid in) can now access their entire pension pot and use it at their discretion.
This has provided incentive for those approaching retirement to plan ahead particularly as life expectancy increases and later life care becomes part of the financial equation.
Never before has seeking professional advice been more important than the decision on how to best use these hard-earned savings.
As dedicated pension specialists we can provide specialist advice on:
- Establishing your future requirements and financial aspirations
- Financial independence – a secure and safe financial future
- New pensions freedoms – using your pension pot wisely
- Retirement income options – annuities/types of drawdown
- Tax relief and pensions – annual and lifetime limits
- Lifetime allowances
- The State Pension – new rules
- Defined contribution pension schemes – providing an income in retirement
- Defined Benefit Schemes – secure income for life
- Personal pensions – tax efficient saving for retirement
- Self-invested personal pensions (SIPPs)