Retirement Planning

Retirement can last 20-30 years, maybe even longer so you have to be prepared.

The earlier you start saving into a pension the higher your income in retirement is likely to be.

If you are working then you are usually building up the right to a basic state pension and possibly an additional state pension but these may not be enough to give you the standard of living you want. A personal arrangement can start providing you with an income from age 55.

We can help you work out how much income you will need based on what you spend in today’s terms. We can then review your current arrangements and discuss the options to help you reduce the shortfall.

A personal pension offers many advantages including:

• • Tax relief on pension contributions (up to government set levels)
  • Your fund can grow free of most taxes.
    
    When you take your pension benefits, you can usually access up to 25% of the fund as a tax-free lump sum. However, there are certain restrictions to this, such as your age and the size of your pension. You will need to be aged 55 or over in order to access up to 25% of your pension pot and following the March 2023 Budget, the amount of tax-free lump sum you can take is 25% of your pension fund but limited to a maximum of 25% of the standard Lifetime Allowance.
    
    

The remainder of the fund can be withdrawn over time, this will be taxed as income.

EXISTING PENSIONS

Many people have accumulated various pensions throughout their working careers. Some of these pensions will have a higher fund value than others. In the main this could be down to two factors:

• • • Expensive administrative charges on the contract.
    • Poor investment performance.
      
      

Pension consolidation advice is available. If you hold a Defined Benefit Pension Scheme or Defined Contribution pension with a guaranteed minimum pension or income, any advice you receive will be through a dedicated referral advice service and a specialist within our network.

We provide a service that will review your existing plans and provide you with an unbiased report detailing whether you should remain in your existing contract, alter your existing contract or transfer the pension into a more suitable plan.

If you withdraw 25% of your pension fund, the income that you are able to secure is likely to be significantly lower.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

From 2028, the age at which someone can access their pension will be 57 rather than 55.