These are just some of the many financial planning questions to ask ourselves as we plan for, take, and live our retirement years.
Phare Financial Services advisers can help you work through these questions and ensure that you are in the best position possible.
For many, this will involve using tax-efficient vehicles such as pensions and ISAs. These are simply a pot of money or investments which are designed to grow free of UK tax and provide an income when you are no longer working.
Pension contributions in particular qualify for tax relief at your highest rate of income tax, unless your individual circumstances mean that it is subject to restrictions.
You, your employer, and the government can all pay into your pension. You can also pay into someone else’s pension pot, such as your spouse or children’s.
Many of us will have pensions, but there are also other asset classes that could deliver for your retirement, such as residential property, or ownership of a private company.
Whatever your chosen vehicle or vehicles to support your retirement financially, it is vital to make the most of them, including being as tax efficient as possible. Something that expert advice can help with.
If you need help with your retirement planning or pension management, then please call 020 3701 2222 or email clientservices@pharefs.com with your enquiry.
“When can I draw my pension income?”
From age 55 (57 from 2028), you have the option to take money out of your pension. There is usually no deadline, but most people start accessing their pension when they cut down their working hours or stop working altogether.
“How much will I get when I retire?”
The size of your retirement savings pot will depend on many things, including:
- How much has been paid in
- How well your savings pot has performed
- How long your money has been invested
- How you have chosen to access your savings
- How much has been deducted in charges
“How can I draw my pension income?”
The decisions you make on how to draw your pension income can have lasting repercussions, and with increasing life expectancy it is crucial that you consider all the options available to you.
You may have heard the phrase ‘pension freedoms’, which simply means new legislation allowing greater flexibility in how you can draw your pension. The wide range of options available for having an income stream include taking it all as a lump sum or purchasing various types of annuity or drawdown.
Pensions can be complex. Be it setting up your first pension, reviewing your existing plan, or approaching retirement, an adviser can make sure you fully understand your options to keep your money working hard for you while you get on with living your life.
Please call 020 3701 2222 or email clientservices@pharefs.com for more information.