Planning for Retirement
Saving for retirement and getting to grips with your pensions can appear a challenging task, particularly as governments seem to be constantly changing the rules.
Nevertheless, pensions offer a very tax efficient option towards accumulating the wealth in your working life that will provide for a rewarding retirement. This is particularly true for higher-rate tax payers who benefit greatly from the very generous tax relief on money placed into pensions.
Pensions are the most tax efficient savings and investment vehicle to a UK tax-paying resident. Please do not think of a pension as a savings or investment, but rather as a personal tax allowance which can enhance your savings and investments towards your retirement provision.
As part of your overall financial planning for retirement, you should ideally have other saving plans and assets in place to provide for overall security. These options are also discussed in this section and throughout the website.
Questions you may wish to address
Some questions you might wish to address may include:
- How much will I need to save towards my retirement and what am I likely to receive?
- Is it better for me personally to save into a pension or an ISA, perhaps even buy a property, or some other type of investment?
- How does my pension policy(s) fit with my other financial planning needs?
- Should I place more into my pension in order to mitigate a large tax bill?
- What are the tax consequences for me personally and my business?
- What about my partner? Should they be paying into a pension and would it be better if we rearranged our budget accordingly to make this affordable?
- Would my partner get better tax relief than me by paying into a pension?
- What happens to my pension if I die or my partner’s pension if they die?
- I have various pensions some I no longer contribute to and some from previous employment. What are they worth and can I access these?
- Do these old pensions need reviewing?
- Can we transfer these pensions together? Is this a good idea or will I lose benefits?
- Am I paying too much in charges for my pension(s) and are they invested in the right type of assets to provide the investment growth needed to provide the benefits I require when I want to retire? Are there other types of investments available within my pension policy or are my options severely limited? Can I do anything about this?
- I have a final salary scheme and I am funding this to the maximum although there is an additional money purchase scheme I could pay into. Would that be my best option?
- My employer provides a pension scheme but is it really fit for purpose?
- I own a business and I see that as my ‘pension plan’ – is this wise?
Finding the answers
The answers to these questions depend on: your personal circumstances; your own needs and requirements; how much you can afford to put aside; your tax position; health; time frame and other plans.
The most suitable plan for you may be totally inappropriate for someone else, hence the need for unbiased, independent financial advice.
If you have a question, or would like to arrange an initial meeting to discuss how I can help you with your options at retirement/semi-retirement – at no cost and without obligation – call (01295) 660571 or request a call-back.