Pensions

 

The value of pensions can fall as well as rise. You may get back less than you invested.

Please note that whilst every effort is made to ensure that the information contained within this explanation is correct, these notes are by necessity brief and of a generalized nature. We would provide specific personalized advice prior to finalizing any arrangement.

A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. The value of units can fall as well as rise, and you may not get back all of your original investment.

 

Retirement

Planning for Retirement

The average British household is saving less than it needs to have a comfortable retirement.

Looking that far ahead is difficult, but the earlier you start making provision for retirement the more you will build up.

Pension plans offer a tax efficient and a very effective way of saving for the future.

However recent changes in legislation mean this can be a very complex area of financial planning.

We will explain the options to you simply and in plain English to enable you to make an informed decision as to your pension needs.

Our experienced consultants can assist you with advice on retirement planning by helping you to make the right choice!

Our consultants are supported by award winning pension and annuity providers that have many years’ experience in the pension arena.

We have a broad range of retirement contracts we can advise on:

Personal Pensions

  • Essentially a tax efficient wrapper      around long term savings for retirement, that benefit from tax advantages      at the point of input and withdrawal.
  • Access to a wide variety of funding      arrangements utilizing a wide range of assets.

Stakeholder pensions

  •  Similar to a Personal Pension but with lower costs as a result of streamlined fund choices.
  • Targeted particularly for those with fluctuating, low or no taxable earnings such as a non-working spouse.

Self-Invested Personal Pension Schemes (SIPPs)

  • For individuals that want to manage their own pension fund assets, a Self-Invested Personal Pension scheme (SIPPs) will allow this option.
  • Allows direct investment in UK and overseas quoted securities as well as commercial property or private managed funds.
  • Able to invest in alternative investments as long as they have been passed as HMRC accredited investments.

Small Self Administrative Schemes (SASS’s)

  • For the family operated company or entrepreneurial director a SSAS is an effective pension vehicle for long term planning providing the business with significant pre-retirement tax planning opportunities.
  • very flexible in terms of the investment choice as it is not limited to insurance funds and can include loans to the employer, the purchase of unquoted company shares (unlike a SIPP) and commercial property.
  • However, benefits will be limited based on earnings at retirement and length of service.

Group Personal Pension Schemes

  • A series of individual personal pensions provided by a single life insurance company on behalf of a company.
  • Regulatory requirements imposed on the employer are much less onerous and costly compared to that of a final salary pension scheme.
  • Both the employer and the employee can contribute to a Group Personal Pension.
  • Many Employers need to review their current arrangements in the light of the new National Employment Savings Trust NEST) becoming mandatory from 2012.

Auto Enrollment

  • New legislation which requires all employers to automatically enroll their workforce (depending on age and salary level) into a qualifying pension scheme.  
  • Employers and employees will be expected to contribute in most cases.
  • Employers will need to assess the workforce, review existing company pension arrangements and communicate the impending changes to all workers as well as have systems which will cope with the flexible nature of auto enrollment where workers are moving in and out of eligibility.
  • The Financial Conduct Authority does not regulate on Auto Enrolment pensions

At Point Me To Ltd we will undertake this work on your behalf

Useful Links:

www.thepensionsregulator.gov.uk/employers/what-is-automatic-enrolment

www.thepensionsregulator.gov.uk/employers/automatic-enrolment-detailed-guidance

Preserved Benefit Schemes and Pension Transfers

  • Where an individual may wish more control over their accrued pension benefits and opt to transfer their fund to an alternative arrangement.
  • Popular reasons are to potentially gain better performance, obtain advice, and consolidate all their pension pots or to benefit from a potential lower charging structure.

At Point Me To Ltd, we ensure the advice given is correct for you by having two assessments made of the transfer and all parties are to agree that this is best advice before we transfer any scheme.

Useful Link: www.gov.uk/browse/working/state-pension

 

The pensions market is confusing! It is about understanding your options and reviewing these options to ensure the right path is taken. Our consultants can advise you and guide down the right path.

To speak to one of our consultants you can either call us on 01564 776016 or submit an enquiry form and we will contact you shortly.

Please note that the value of the investments can go down as well as up and you may not get back as much as you put in.

 

At Retirement

There are several options available to you when you come to take your retirement benefits and it is very important you take advice to ensure you take up the option(s) that are best for you.

PENSION COMMENCEMENT LUMP SUM

Personal Pensions / Stakeholder

  • Up to 25% of the fund as a Pension Commencement Lump sum which, at present, is tax-free.

Company Pension Plans

  • A pension commencement lump sum will usually be up to 25% of the value of your plan

SCHEME PENSIONS

  • Income provided by the pension scheme itself (e.g. a final salary scheme) or by an insurance company nominated by the scheme administrator.

LIFETIME ANNUITIES

  • With a traditional annuity, the ‘annuitant’ (the person receiving the pension) gives cash (normally from a Personal      pension arrangement) to an insurance company in exchange for a guaranteed income for the rest of their lives.
  • The big problem with annuities is that the ‘rates’ (the amount you receive as income) are dropping – and have been for some time.
  • There are various Annuity Options
    • Single Life
    • Joint Life
    • Guaranteed Annuities
    • Escalating Annuities
    • Impaired Life Annuities

INCOME DRAWDOWN (IDD)

  • One alternative to purchasing a conventional annuity is ‘Income Drawdown’.
  • Income (withdrawals) can continue indefinitely, from the pension fund while the remainder of the fund stays invested.
  • However, there is no guarantee that the fund remaining will grow sufficiently in the future to maintain the level of income.

Talk to us

To speak to one of our consultants you can either call us on 01564 776016 or submit an enquiry form and we will contact you shortly.

The value of pensions can fall as well as rise. You may get back less than you invested.

It’s never too early to consider your retirement, you will need to consider:

  • Looking that far ahead is difficult, but the earlier you start making provision for retirement the more you will build up.
  • Pension plans offer a tax efficient and a very effective way of saving for the future.
  • Our consultants are supported by award winning pension and annuity providers that have many years’ experience in the pension arena.
   

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Point Me To Limited is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority.

Point Me To Limited. Registered in England and Wales under No. 8390051. Registered office address – 1623 Warwick Road, Knowle, Solihull, West Midlands, B93 9LF.