Ensuring adequate income for life requires careful planning across a wide area.
Recent new rules affect the amount of pension savings that can be made tax efficiently. These rules have complications and deadlines and there is a lot of scope to miss out on valuable tax reliefs if you are not careful.
There are also new rules on how you can draw money from pension savings. Annuities are less popular and different forms of drawdown need to be considered from an investment and tax aspect. Not only is income tax a consideration where savings are possible through techniques such as phased drawdown but the inheritance tax situation is complex and needs to be considered in tandem.
Aside from traditional pension savings, more and more people are supplementing their pension provision with other sources of retirement income, such as savings products, investments and property acquisitions. The tax and financial implications of such decisions are complex and require timely and expert advice.
Then there is the question of when you should plan to retire and perhaps how you will leave your business – whether you will pass it on to others in your family or sell it and reap the financial rewards. It is wise to prepare your exit strategy well in advance and to be sure you optimise your tax position while you still have flexible options.
Finally there are matters of life assurance provision, long-term care, and medical insurance to consider if you are to maintain a good quality of life throughout your retirement.
The three keys to successful retirement planning are:
- Plan well ahead – It is never too early to start retirement planning. The earlier you start the greater your chances of achieving your objectives
- Maintain balance & flexibility – It is especially important to achieve an appropriate balance between high and low risk exposures, and to maintain flexible options with regard to instruments such as pensions, savings, investments, and insurance
- Seek professional advice – This is a very complex and continuously changing area.
We strongly recommend you seek skilled, professional advice at every step.
In our view the ideal solution is to take joined up advice from a tax specialist and an excellent financial adviser.
Contact Us today to discuss how we can help you plan effectively for your retirement.
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