Have you considered how much income you will need when you retire? How much do you currently expect to receive?
Do you know where it will come from?
There are many ways of funding for retirement, but pensions form the core of retirement planning for most people. A pension is simply a tax wrapper for an investment fund, which can be invested in a variety of sectors, such as cash, bonds, equities and property. Arguably, the main benefits of a pension are that money invested in it receives basic rate income tax relief and any growth within the fund itself is tax-free.
When you choose to take your benefits, there are a number of ways in which you can do so; it is therefore vital that you receive correct advice at this time, in order that the style of benefits is most suited to your circumstances. You should also bear in mind two things: firstly, you do not have to be retired to take benefits from your fund (although you do have to be of a certain age); secondly, you are not obliged to take benefits from your pension fund provider, but are at liberty to take your fund to the open market and search for the best deal.
Any income you receive from your pension fund is added to your other income and is chargeable to income tax.
This is only a brief overview of pensions and retirement planning and we strongly suggest arranging a meeting to discuss your requirements in greater depth. As stated at the beginning, pensions form a large part of retirement planning for most, but should be considered together with other investments and assets.
So, if you're considering starting a pension, transferring an existing one, reconsidering the investment strategy or you simply want to discuss retirement planning as a whole, we could help.
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