pensions
Pensions And Your retirement lifestyle
Let Stage Financials’ Howard Morgan’s platinum standard of financial advice give you a securer future.
Pensions, we all know we need one. Some of us already have one, but is it the right one for you? Others worry that they may have left it too late. We specialise in working with clients Richmond, Twickenham, St Margaret’s, Isleworth, and Teddington who are close to retirement. Due to Howard’s professional qualifications, which cover a wide area of expertise, our team is well-placed to offer you tailored professional pension advice.
Pensions overview
The general rule of thumb with pensions is the sooner you start the better it is, but that is not set in stone. Also, even if you have started then it might be that we could make your pension work harder for you. It’s worth noting that if your pension fund is already quite large, the more advice you may require, as the knock-ons from fluctuations in performance will be proportionally larger.
There are various types of pensions available: annuity, income drawdown/ unsecured pension, personal, SIPP, SSAAS, and State pension. Which pension is right for you depends on your personal circumstances: director, employed or self-employed for example. All come with advantages and disadvantages and once we have discovered your personal circumstances, we would be in a good position to advise you on the right one for you.
Retirement Planning
We help you to ensure that you are going to have enough money to have a happy retirement. Clients often feel daunted and out of control as the task at hand is so great. We hold your hand and check everything is in order and if necessary make adjustments to ensure your money is working as hard as possible.
Pension Lifetime Allowance
Although the ‘Lifetime Allowance’ was abolished in the 2023 Spring Budget, there are still many complex Pensions topics that require professional advice.
Even paying into a pension for high-earning individuals can be complicated. There has been an absence of protections and many rule changes that can make it difficult to understand and calculate maximum contributions, protect tax-free cash, and claim tax relief for higher and additional rate taxpayers.
We frequently come across these issues and have years of experience helping our clients to successfully manage these issues.
Pensions Consolidation
Life is never constant, we get promoted and change companies, often leaving multiple company pensions in our wake. It’s not always easy to keep track of them. How often do you ask: Are they the best funds? Are they competitively priced? Are they coordinated to make sure that they are doing what they should? Are there any goodies that would be lost if they were transferred?
We look into each individual scheme you hold and recommend the best way to assemble your retirement fund. We take time to go through the benefits & drawbacks and then propose a personalised financial plan that puts you on the right road to meet your financial goals.
Defined Benefit Pensions
Our starting point is that transferring a defined benefit (Final Salary) pension is not a good idea. This is converting guaranteed income for life to a cash amount that can be transferred to your pension where you take control and investment risk.
However, with all things, there can be extenuating circumstances and exceptions to the rule. If you would like more information please get in touch so we can help you understand this topic in more detail.
Commercial Property Pensions
A method some clients employ to maximise their pension pot is to buy a commercial property. They then put the rent from the commercial property into a pension; the value of the property grows with no Capital Gains Tax, so making it a tax-efficient way of holding onto an asset.
You can also borrow up to 50% of your fund to fund the mortgage you may need you to purchase the property.
Pension Sharing Orders
If you are divorcing or are divorced, some final settlements require splitting pensions. If the pension is in your name, you will need to transfer these funds into the other party’s pension arrangement, making sure it’s suitable for both parties’ needs, requirements, and personal circumstances.
Disclaimer
- Transferring out of a Final Salary scheme is unlikely to be in the best interests of most people.
- The value of pensions and investments and the income they produce can fall as well as rise. Therefore, you may get back less than you invested.
- Tax treatment varies according to individual circumstances and is subject to change.
- The Financial Conduct Authority does not regulate advice on estate planning and some forms of taxation.