PENSIONS & RETIREMENT PLANNING

Common in today's work environment, most people benefit from having access to a workplace pension (an area we help advise employers on) where both the individual and their employer may contribute to a pension plan as a means of building up funds for retirement.  This is good in that it can provide an additional employment benefit or an indirect increase in an individual's remuneration package. Individuals also often build up a number of pension arrangements during their working life where these are often left un-reviewed year on year, which could cost individuals in terms of potential high charges and/or poor performance...

"Any asset be it pensions, savings, property, shares, land, investments can be used for retirement planning...  The key is knowing which assets to use for what planning objective and how to do so in the most tax efficient and create manner."

We have also seen the government relax the rules around pensions in 2016, known as 'Pension freedom,' allowing greater flexibility in how benefits can be taken from pensions as can be seen through our video above.  From experience we have seen examples in the industry of individuals using pension freedoms at their peril by luring people into accessing benefits without understanding the tax implications and potentially paying penal tax.  This is where our expertise comes in by guiding and advising on such matters and often using a number of planning vehicles to deliver exactly and in the most tax efficient manner and individual goals without compromise. 

"It is fair to say that although pensions are one of the most tax efficient vehicles to use in building up a nest egg for retirement due to potential income, national insurance, inheritance tax savings, pension do have limitations and restrictions, more relevant for younger rather than older individuals.  Therefore, it is essential to consider short, medium and long term planning goals so that differing objectives are met through products that are suitable in terms of duration, tax planning and income or capital sustainability."

Call today, email us or complete our enquiry form and take advantage of our no cost, no obligation initial review service!

PENSION TRANSFERS

The introduction of Pensions Freedom has opened the door for people who may have built up a number of pension arrangements during their working life to consider consolidating both private and occupational pension transfers.  However, as occupational pensions often carry valuable guarantees, which are lost where transferring to a private pension, individuals need to be very careful, with consideration given in this area to ensure that such an option is both appropriate and in your interests.  This is an area that typically requires professional advice and not one an individual should consider without taking advice.  We have chosen not to hold the permissions required to provide occupational pension transfer advice, although we can help by guiding you to a number of suitably qualified companies in this field where required and appropriate.

There are many factors to address when looking at pension transfers and when we carry out a pension transfer request review we look at a multitude of issues such as but not limited to :-

  • Logic and reasoning for considering a transfer.

  • Income Needs (essential & discretionary).

  • Spouse and family considerations.

  • Health.

  • Estate, long term care and Inheritance tax planning considerations.

  • Views and suitability around investment risk, sustainability of income and future pension plan/account values.

  • Short, medium long term spending plans.

  • Levels of flexibility required.

  • Investment performance.

  • Existing and proposed product features - guarantees, life cover, premium protection, future flexibility options or investment  choice options.

  • Existing and proposed charges - product, fund management, investment fund charges.

  • Designing a packaged solution to meet a multitude of varying income requirements.

If you wish to consider reviewing your existing pensions then why not get in touch.

Call today, email us or complete our enquiry form and take advantage of our no cost, no obligation initial review service!

RETIREMENT OPTIONS

"It can become confusing when looking at the many factors that need addressing around retirement, considering any pensions built up, the options available and what income they and any other assets and savings may generate....  Will these assets support a level of income you need, will the pension pot last your lifetime, what about providing for inheritance, your spouse or family...  These are some of the many issues that require careful assessment before setting off on your retirement journey and considerations that need to factor in and have flexibility to allow for changing needs - Your retirement plan."

Putting a plan in place will help you focus on what you may need from your savings to deliver the outcomes you want. With professional advice and careful planning you can maximise your retirement options and income.

With the introduction of Pension Freedoms, it is important that you understand the options available to you, both through any existing pensions and the wider open market, as the decisions you make at this stage could influence your income for the rest of your life.  With the right information and advice you will be able to decide the best way for you and your family to benefit most effectively from your hard earned pension savings.

There are many factors you will need to consider before making a decision about what to do with your pension savings.  The following are some useful points we discuss with clients in helping establish a suitable retirement options path. 

 

Do you :-

 

  • Need to continue contributing to pensions?

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  • Wish to combine pension savings into one pension plan?

  • Know how to trace pension savings you may have lost track of?

  • Need to draw income or lump sums from pension savings yet?

  • Want to carry on working and understand the impacts this may have where taking pension benefits?

  • Know the best way to take pension income now and in the future based on your specific circumstances?

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  • Take benefits as a pension drawdown (multiple variations available), annuity, as cash or a combination?

  • Understand how other investments can help achieve as tax efficient and as higher pension income?

 

  • Need to provide for an income to your spouse, civil partner or other beneficiaries and dependents when you die and understand how to plan for it?

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  • Know how you can protect pension income against future inflation?

  • Need to keep pension income options open?

The answers to these and many more common factors to consider generally requires professional advice due to their nature and is where our expertise lies.  Our retirement options review service helps you by generating all data into a simple and concise format, making it easy for you to see the advantages, disadvantages, costs (existing versus proposed), features & benefits, as well as your options so you are able to then make an informed choice as to the best outcome and course of action for you.

Call today, email us or complete our enquiry form and take advantage of our no cost, no obligation initial review service!

Tony Walker Financial Planning Services Ltd is registered in England and Wales no. 11995450. Registered office, 23 Priory Close, Heaton-with-Oxcliffe, Morecambe, Lancashire, LA3 3RL.  Authorised and regulated by the Financial Conduct Authority. Opes Independent Financial Advisers Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 913426.

The Financial Conduct Authority does not regulate tax and trust advice, estate planning, some forms of corporate finance and commercial buy-to-let mortgages. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.
 

Any videos contained within our website or provided via third party links are for information only and should not be construed as advice.  Any graphs or similar images are for illustrative purposes only and should not be relied upon. Investments carry risk and capital invested may go down as well as up, meaning you may not get back the full amount invested. Past performance is not a guide to future performance.
 

The quidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.  Where information in any form is provided via this website referring to a third party or where a link to a third party website is provided we cannot be held responsible for the accuracy of such information or the content of any external website(s).

Where communicating with us initially online you should never send any sensitive information to us via conventional email unencrypted.  Sensitive information to or from us will/should only be sent securely via our 'Client Portal'.  We arrange registration on our Client Portal following completion of our enquiry form.  Therefore we cannot be held responsible for issues or consequences in this area where sensitive data is sent to us unsecurely or unencrypted.

 

If you wish to register a complaint, please write to us at the address above or email us at tony@financialadvisorlancaster.co.uk

 

A summary of our internal procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.

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