This document looks at the different investment vehicles available to the individual investor together with the key points to note. This is an at-a-glance guide with more detailed information being contained in the other documents on this page. The value of investments and income from them may go down. You may not get back the original amount invested and the levels, basis and reliefs of taxation are subject to change.
Planning For Tomorrow, Today
The big question is, how much do you need to live a comfortable retirement? As experienced Retirement Planning Advisers, our guidance is designed to find your right way forward.
Suddenly, the retirement years are around the corner and soon you will be living off your pension, but what exactly does this mean? Choosing what to do with your pension fund requires careful thought however, for many the decision is easy - replace your employment income with your pension income. Whether you have got £45,000 or £1,500,000 in your pension fund, this is likely to be the biggest cash lump sum you have seen. Life expectancy is on the increase so you may require your pension fund to support you through 30+ years.
Think Before Saving
Mounting pressure on people to build a nest egg for retirement can sometimes force people down the wrong path. It is important you develop a Total Savings Strategy that will reduce the risk of losing money you have set aside but equally will maximise growth.
Pensions work like an investment wrapper, so are similar to an ISA. The difference is in the limits and benefits. Like any investment, you will choose which funds to invest your pension pot in. Higher returns and high risks are likely to go hand in hand, however these are long-term plans, so your pension performance should smooth out fluctuations in investments.
The downside to investing purely through a pension fund is, it can restrict how and when you can access your money.
What Are The Limits?
- Annual Limit - If you pay in more than £40,000 (2018/2019), you will have to pay tax on any payments over this amount.
- Lifetime Allowance - If your total fund value, including every pension you hold is worth more than £1,030,000 (2018/2019) when you retire, you will have to pay tax at the marginal rate.
Any contributions made to your pension by your employer will count towards these limits.