Guide to Retirement Planning
RETIREMENT PLANNING
Shaping your retirement plans to best meet your individual needs and circumstances
Welcome to our Guide to Retirement Planning. Pension freedoms have transformed the pension landscape, giving more choice than ever before in shaping retirement plans to best meet our individual needs and circumstances.
Once you’ve decided to start saving for retirement, you need to choose how to do so. Pensions have a number of important advantages that will make your savings grow more rapidly than might otherwise be the case. Following the biggest reforms to pensions in recent times, whilst the ability to unlock pension pots is attractive you also need to understand the tax implications of doing this and accept the risk of ensuring that the funds built up are managed effectively to ensure that they last for life, however long that may be, and don’t rely on the State Pension to keep you going in retirement. The maximum basic State Pension is £155.65 per week (effective from 6 April 2016).
What is a pension pot?
‘Pension pot’ can refer to any pension fund built up with pension contributions you and/or your employer make. You’ll have one if you have a ‘defined contribution’ pension which includes workplace, personal and stakeholder pension schemes. If you’re planning to retire in the next couple of years – or to start drawing your pension so you can reduce your working hours – then you’ll be aware that there are some major choices to be made. In our Guide to Retirement Planning, we look at this complex area and what you need to think about.
The pension freedoms announced by the Chancellor, George Osborne, in Budget 2014 and introduced on 6 April 2015 mean that instead of being required to buy a pension with your pension pot, people aged 55 and over now have more flexibility to take their pots how they wish.
Contents
- Pension freedoms
The most radical changes to pensions in almost a hundred years - Tax relief and pensions
Annual and lifetime limits - Lifetime allowance
Value of payouts from pension schemes - State Pension
New rule changes - Defined contribution pension schemes
Providing an income in retirement
- Defined benefit pension schemes
Secure income for life - Personal pensions
Saving tax-efficiently for retirement - Self-invested personal pensions
Providing greater flexibility with the investments you can choose - Using your pension pot
More choice and flexibility than ever before
WILL YOUR PENSION INCOME LAST FOR THE REST OF YOUR LIFE?
Following the biggest reforms to pensions in recent times, whilst the ability to unlock pension pots is attractive you also need to understand the tax implications of doing this and accept the risk of ensuring that the funds built up are managed effectively to ensure that they last for life. To discuss your situation, please call us or use the contact form by clicking here – we look forward to hearing from you.
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