Pension planning

Continual tinkering with pension rules and regulations has given us a pensions system that is often difficult to understand and left many questioning whether to bother with funding a pension at all.

However, pensions should not be dismissed so lightly. Through tax relief (available up to 45%) and tax free growth, there are still powerful incentives for funding a pension. Higher rate taxpayers, for example, using their full £40,000 pension annual allowance can convert a £20,000 tax bill into their own retirement savings. And do you really want to rely on the State to provide you with a pension income in retirement?

Whilst the rules can be complex, we can work with you to gain an understanding of your personal situation and suggest ways to help you fund a pension tax efficiently and ensure your plans for your retirement are in your own hands.

Below are just some of the pension issues we can cover:

  • Make maximum use of the £40,000 pension contribution allowance
  • Consider whether you are affected by the lifetime allowance of £1,055,000
  • If you are a owner or director of a company, consider ways to fund pensions to both extract profits tax efficiently for you and provide the company with corporation tax and national insurance relief
  • Consider if your existing  pension scheme is the most suitable for you.  Alternative schemes such as Self Invested Personal Pensions (SIPPs) give you control over your pension fund and allow a greater range of investment types including commercial property. Similarly Small Self-Administered Schemes (SSASs) allows loans to the company, and enable you to buy and leaseback company premises
  • Assessment of whether your existing investment strategy is appropriate for you and on course to meet your future retirement objectives

Contact us to find out more.