The State Pension is diminishing in real value and is being paid later in life. It is now around 30% of the National Average Wage compared to almost 50% when it was introduced in the 1940’s. Coupled with that, you may have to wait longer than you had expected to claim as the state pension age shoots upwards (to 68 by 2046). It is widely believed that for the children of today, the state pension age will be 70.
All of this means that relying on the State Pension will not be adequate for a comfortable retirement, so if you are not in a good employer scheme, you should start to think seriously about making personal arrangements.
In April 2016 a single-tier state pension replaced both the basic state pension and the second state pension, leaving a new structure better suited to integration. However, those still reaching state pension age will find that they may not qualify for the full amount due to previous arrangements they have in place. We can help you find out what state pension entitlement you currently have and what you can do to try to boost it in the remaining years to retirement.
Pensions Simplification was introduced in April 2006 which completely revised the legislation affecting all forms of pensions, offering many new opportunities both with old policies and new policies being implemented. In 2014 a further wave of pension tax reforms were announced, which once again changed the pension landscape, mostly ending the traditional link between pensions and annuities.
Many new arrangements limit pension funding – the Annual Allowance limits how much can be paid in each year and the Lifetime Allowance limits how much can be accrued in all of your pension arrangements. There are hefty tax charges for those who exceed these limits, and they apply equally to those funding their own private pension, as well as those in occupational arrangements. We can help explain the rules and how they may affect you, as well as ensuring that you maximise your pension provision and the tax relief available.
Auto-Enrolment into a workplace pension scheme was introduced in 2012 in order to encourage more people to save for their retirement. Under the scheme, all employers have to enrol all eligible workers automatically into a qualifying pension scheme, and employees and their employers must make contributions. We can help both employers and employees to understand what this mean for them.
There has been a lot of press coverage regarding transferring defined benefits (DB) pensions (also known as final salary schemes) into personal pensions or SIPPS. This can be a dangerous course of action and result in the loss of valuable guaranteed benefits for both you and your family. In order to advise in this area, a firm needs to have the regulatory permissions and qualifications to guide you through a complete analysis of your current arrangements, using an independent reviewing process to ensure that you have all the facts before making a decision. We can help you to find suitable assistance in this area.
Whatever your pension arrangements are it is important that you continue to review your plans and ensure they are on track to meet your retirement expectations.
Pensions are not the only way of building wealth to support you and your family in later years. Other savings and assets, including ISAs or property, can also form part of your retirement savings portfolio.
Another consideration to boost your retirement finances might be through your home. Equity Release plans allow you to release tax-free cash from your home, as a lump sum, as regular income or a combination of both to boost your finances in retirement. However, you should discuss all of the implications with us before deciding whether this is a suitable avenue to take.
If you want help with any of the above areas, then contact us for a thorough and independent review of all your pension plans and retirement arrangements. We will make sure that you get the right advice, both now and in the future so that you can retire with an income that allows you to enjoy your retirement to the full.
Appointments for our Devon financial services can be held in our offices at Exeter or Exmouth during office hours. However, if it is more convenient, we can arrange for the appointment to be at your home address or business premises.
Thompson Jenner Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.
We would love to meet you, which is why we offer all new clients a free, no obligation initial consultation. Click the contact button below to see all the methods to get in touch with us and if you like you can leave an email enquiry with the form provided and we will contact you to arrange a time and date.Contact Us