Pensions can seem complicated and with new choices available, it has never been more important to talk about your options with a financial adviser. Pensions continue to be an extremely tax efficient method in saving for retirement and should not be overlooked. They can complement any other strategy such as Property investment or building up ISAs, and they have excellent tax reliefs for individuals and businesses.
Saving for Retirement
Building funds for retirement is essential in ensuring you are in control of your own destiny. It is easy to put off paying into a pension, however the earlier you start, the more in control you can be.
We can help you in this stage of the planning process by checking how on track you are and whether further funding is required to make sure there isn’t a shortfall at retirement. You may have also built up pensions but remain unsure if the investment strategy is appropriate to you or know what the charges are on the contract and whether this remains competitive.
In retirement you hope to replace the income from your employment or self-employment with another income stream and pensions can help you with this. The choices at retirement are more complex than ever, however tailor-made planning can help you achieve your retirement goals. You can essentially do this via two routes or a combination, which are buying a secured income or taking income from the fund.
An Annuity provides you with a secure income for life and you are able to build in additional features such as spouses’ benefits to tailor it to your own circumstances. If you have any lifestyle factors (e.g. smoking) or medical considerations (e.g. high blood pressure, high cholesterol) you are able to apply for an Annuity on enhanced terms which we are able to source for you via our Whole of Market approach. It is basically working on the same premise as life cover, but this time any disclosure works in your favour!
The other option is to take income flexibly from the fund, whereby you remain invested and take an income from your retirement fund rather than buying an Annuity. This brings additional risks which you will need advice about, but we are happy running through with you the pro’s and cons of each method as your retirement picture could involve both strategies.
Pensions in Divorce
Going through a separation can be an extremely stressful and long ordeal and you may need advice with regards to pensions that have been awarded to you as part of the divorce. Pension Sharing Orders enable pensions to be transferred from one party to another as part of the divorce settlement and this is something we are sensitive to and qualified in offering advice in implementing such orders.
Dealing with a bereavement is another traumatic event to deal with and knowing what to do with pension arrangements previously owned by the deceased can be incredibly complicated. Again, this is something that we are trained to deal with and we are able to take away the stresses of such financial planning.
Please contact us on 01489 574355 or via the Contact page on our website, to arrange a free, initial no obligation consultation at our office in Park Gate, Southampton, Hampshire.
The Financial Conduct Authority does not regulate taxation advice