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Retirement Planning

We have the expertise to advise you on the many changes taking place that may affect your pension, helping you to plan for your retirement.

A pension is now often compared to a tax efficient bank account. You can access your fund from age 55 (it is expected the minimum age will increase to age 57 at a future date) and withdraw as little or as much from your fund as you so require (leaving the remainder invested for future growth) – one does not need to withdraw all their tax free cash in one go, you can take what you want when you want. One no longer has to purchase an annuity and in the event of your death the fund is passed as a tax free lump sum to your nominated beneficiaries up to age 75, taxed at their marginal rate thereafter.

Some points to consider:

Lifetime Allowance
Year 2018/19 is £1.03M and increasing annually in line with CPI- Is your fund in danger of exceeding the lifetime allowance when you reach retirement. If you exceed this you will be be charged a lifetime allowance charge. Someone aged 40 with a fund of £300,000 or a 50 year old with a fund of £650,000 or more and 20 plus years left to retirement should be reviewing their plan. Those persons should perhaps be considering maximizing ISA allowances and where appropriate Venture Capital Trusts and Enterprise Investment Schemes (30% tax relief)

Annual allowance
Year 2018/19 is £40,000 - Maximum annual contribution based on certain conditions. But maybe you have not utilized previous year’s allowances and now wish to make a large contribution as you are nearing retirement, or in order to offset against company profits.

Everyone should now be saving for retirement and as early as possible, Why?

  • A fully flexible income in retirement with no need to purchase an annuity. In the event of death the fund remaining can be passed on to your next of kin tax free up to age 75, taxed thereafter at the beneficiaries usual rate of tax.
  • 25% Tax free Cash
  • Tax relief on personal contributions at your marginal rate of tax - A £1000 contribution will cost a 40% tax payer £600.
  • Corporation Tax Relief on Company contributions – helping you build a pension fund for retirement and at the same time reducing the level of corporation tax payable.
  • Ability to purchase your office through your pension scheme, either on your own or as part of a syndicate.

As we are impartial, we can provide independent, unbiased advice, ensuring you choose the most tax efficient solution for your needs, particularly in respect of latest changes, and helping to answer any questions you may have.

To discuss your pension and arrange a no obligation discussion or review, please call us today.

All Investments carry a degree of risk, National Savings products carry one of the lowest forms of risk whereas equities and shares carry the highest level of risk. The value of units can fall as well as rise, and you may not get back all of your original investment.

Risk Warnings:

  • The tax treatment is dependent on individual circumstances and may be subject to change in future.  In addition, the availability of tax reliefs depends on the companies invested in maintaining their qualifying status. Please refer to the HM Revenue & Customs website for further guidance on the tax relief available on EIS/VCT investments
  • A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation