The fact you are looking for, or already receiving advice from us would indicate that a career in financial planning is not for you. We’ve designed our resource centre so that you can dip into subjects or linger on those that interest you most. Nothing beats personal advice in our view but we hope you find the information available here useful.
The brave new world of pension provision
The Budget threw up the biggest change to retirement planning in living memory. Such fundamental change will inevitably require some fresh thinking around how people save for and fund their retirement. So, what needs to be considered?
An increase in accessible wealth
- Fewer people might buy annuities, which will mean greater opportunity to pass on pension wealth to loved ones
- Unlimited access to pension pots could see an increase in lifetime gifting
- The proposed cut to the current 55% tax charge on lump sum death benefits from crystallised pension pots could also contribute
- Becomes more important as pension wealth becomes more mobile
- Pensions are changing but the tax regime isn’t
- 25 per cent of pensions stay tax-free, but income tax still applies to the balance
- Efficient tax planning will come into greater focus
- Pension saving will be given a huge boost as perceived barriers to access will be removed
- The temptation to take too much too soon from a pension pot will need to be resisted
- Sustaining incomes will bring a sharper focus on long-term planning
- Most changes are scheduled for 2015, but retirement planning for them needs to start now
- The changes put decisions about how to manage retirement income back in the hands of savers. This will shift demand from simply pensions guidance to more encompassing professional advice on wealth management
It’s quite easy for a professional advisor to offer general opinions on the new pensions environment but the reality is that there is no formulaic method for individuals to follow.
The best way to formulate a retirement plan for you is to understand your individual needs and aspirations. Only then can we consider how best to make the system work for you.