Making the most of your money.
Planning with your goals at the forefront
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.
Retirement & Pensions
Reviewing your future
It's important to prioritise planning for a long retirement and investing early to potentially increase your retirement income.
As we are likely to spend more time in retirement, it's crucial to start your pension as early as possible to achieve your retirement goals. Saving into a pension is a great way to invest in your future, and you can start off small and gradually build up your retirement savings over time.
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Saving into a pension is an excellent way to invest in your future. If you're unsure where to begin, don't worry. You can start small and gradually build up your retirement savings over time. The key is to get started.
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How do pensions work
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A pension is a long-term saving plan that accumulates across your working life to provide income for later life.
You usually cannot access your pension until you are at least 55 years old, or sometimes later depending on your pension scheme.
Pensions are tax-efficient as you receive tax relief on your contributions, but tax relief is dependent on individual circumstances and can change at any time.
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Regardless of your age, it's important to review your pension arrangements
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Get a state pension forecast, take full advantage of any government and employer incentives
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Ensure you're maximizing tax relief and employer contributions.
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It's also advisable to seek help from a financial adviser as the value of investments can fluctuate, and tax laws are complex and subject to change.
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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.
Defined Benefit pension
Defined Benefit pensions are becoming increasingly rare, however offer valuable benefits for those in the scheme.
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The scheme is run through an employer, where you accrue benefits based on your earnings, length of service and membership in the scheme.
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They offer a guaranteed income for life, and a tax-free cash lump sum. The age at which you can take benefits is set by the scheme and is typically 60 or 65.
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Defined Contribution pension
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A DC pension is based on contributions set up by you, or through your employer. They work by paying a known amount of money into a pension, typically monthly, by you or possibly your employer, or both (if applicable).
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The pension plan is usually run by a separate pension company with your contributions invested into funds (often a collective of equities) that will hopefully grow over time.
The amount of pension capital you eventually have for retirement will depend on how much you’ve paid in and how your pension funds have performed.
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Your pension contributions will receive tax relief from the government which adds a boost to your retirement savings. DC pensions offer a great deal of flexibility once you are eligible to access your savings however does not come with any guarantees.
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Self-Invested Personal Pension
A Self-Invested Personal Pension (often known as a SIPP), is a Defined Contribution pension which gives you a wide range of investment choices. They usually offer many hundreds or even thousands of different funds to invest in, as well as the ability to hold individual stocks and shares, as well as other assets.
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SIPPs can provide a modern flexible way of saving for retirement, however you should take advice to understand whether it is right for you. These types of pensions are generally suitable for those comfortable making investment decisions.
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Self-employed pension
Being self-employed means that you cannot join occupational pension schemes, although you will receive the State Pension subject to a sufficient National Insurance record.
This means it is essential to make plans for contributing to an individual arrangement in order increase your financial security in retirement.
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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.
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.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
