Pension Advice | Retirement Planning | Pension Planning

Retirement Planning

For most people, pensions are the most tax efficient savings vehicle available. However, they are typically inaccessible until 10 years before your State Pension Age. They are a vital part of your long term financial planning and it is incredibly important that you make the necessary provision for later life, whilst taking advantage of the tax relief that pensions can offer.

Planning for your future is important, and so is ensuring that it is done right. Our pension reviews are designed to establish if your plans are suitable for your objectives, with appropriate investment options, flexible retirement choices and easy administration so that you can control your financial future. Trust us to help you achieve your retirement goals through encouraging saving in pensions and providing invaluable retirement advice along the way.

Pension Facts

Pension savings accumulate in a tax free environment, therefore, depending on your earnings, you could get tax relief of 20%, 40% or 45% on your contributions.

Once you reach pensionable age (currently 55, rising to 57 later this decade) you are able to take up to 25% of your pension savings tax free.

The rest is taxable as income at your marginal rate (and you will of course still be entitled to your Personal Allowance in retirement, on which you pay no tax).

If you have 35 years of National Insurance contributions when you reach State Pension Age (currently increasing from 65 to 67 in 2028), you will qualify for the new State Pension, which for current retirees is £11,502.40 per annum.

You can contribute up to 100% of your UK relevant earnings to a pension, capped at £60,000.00 per annum, unless tapering applies for high earners.

Defined contribution pension schemes enable greater flexibility with retirement options and death benefits, in comparison to defined benefit pensions which are becoming less common in the modern workplace. If you pass away under the age of 75, your DC pension pot is payable tax free to your beneficiaries, acting essentially as an insurance policy.

If you are looking for guaranteed regular income payments from your pension at retirement you may find it suitable to purchase an annuity. An annuity is a contract for receiving regular payments after a certain period of time from an insurance company. There are several types of annuities available, each with its own features and benefits depending on your objectives and circumstances.

Pension legislation and rules are changing regularly, with the latest Budget statement confirming some new policies that will come into play, and abolishing the lifetime allowance charges. We can assist in deciphering these details and presenting you with the information you need to make informed decisions.

Get in touch to find out more on how we can help with your retirement planning.