Pensions & Retirement Planning
When it comes to providing for our retirement, too many people are doing too little too late. Putting away even a small sum early on can make a big difference to the lifestyle you will enjoy when you retire. The golden rule for most people, is to not rely on the State alone. Modern pensions benefit from some very exceptional tax breaks, and nowadays, you can even contribute to your pension when you don't work!
A Day: Everything changed!
In April 2006, the government simplified the pension contribution process, Industry insiders dubbed these sweeping changes as A-Day. So what does it actually mean?
Previously, your contributions would have been limited to a percentage of your earnings, now there’s one rule for all, which is of particular assistance to people in the 20 to 40 age bracket that may have put off investing in a pension. These groups can now put in larger sums later, instead of saving modestly, without being penalised for doing so. Remember, however, that the benefits of saving early can be substantial.
You can now invest up to 100% of your earnings, or £3,600 whichever is higher.
However, two main limits apply:
· Annual Limit
If you pay in more than £255,000 (2010 / 2011 tax year) then you will have to pay tax on any payments over that amount.
· Lifetime Limit
If your total fund value, including every pension you hold, is worth more than £1.8 Million (2010 / 2011 tax year) when you retire, then you will have to pay tax at a punishing 55% on any value above this lifetime limit.
Any money your employer pays into your pension will count toward these limits.
Pensions & Retirement Planning
When it comes to providing for our retirement, too many people are doing too little too late. Putting away even a small sum early on can make a big difference to the lifestyle you could enjoy when you retire. The golden rule for most people, is to not rely on the State alone. Modern pensions benefit from some very exceptional tax breaks, and nowadays, you can even contribute to your pension when you don't work!
Pension Planning
Today there are a number of tax efficient ways of providing for a comfortable retirement. The issues surrounding pensons can be complex and choosing the right vehicle requires a detailed understanding of your circumstances, tax status, employment status and more.
- Stakeholder pension
- Personal Pension
- Group Personal pension
- Executive Pension Plan
- Employers Schemes
- Self Invested Personal pension
- Small Self Administered Schemes
If you would like a 'no obligation' discussion about your pension aspirations or concerns, call us on 01245 265881.
Retirement Planning
This is all about knowing how to maximise the income from your pension arrangements and other assets, whilst taking into consideration tax efficiency, Inheritance Tax, your beneficiaries, flexibility and of course control. Callaway Sykes Associates Limited can provide detailed advice following a thorough financial review. Retirement options include:
- Secured Pension (Annuity)
- Unsecured Pension (Income Drawdown)
- Phased Pension Options of the above
- Alternatively Secured Pension (Post A-Day)