Taking responsibility for our futures
Saving for your retirement has never been more important and potentially never as challenging. With the increase in our life expectancies coinciding with a low interest rate environment and the demise of high quality Final Salary related employer pension schemes, the burden falls on each of us individually to save for our future retirement.
All employers must now provide a pension scheme for their employees which is a start. This is helpful to those who are employed but of course self-employed individuals still have to instigate their own pension savings.
Pension saving carries many benefits
Pension saving is a very beneficial way to build a capital sum for your future with numerous attractions such as:-
- Tax relief on personal contributions at your marginal tax rate
- Investment growth free of income and capital gains tax
- Wide range of investment options to suit all circumstances
- Ability to access the fund from age 55 onwards
- Access the first 25% of the fund tax free
- Use the remaining 75% to buy a guaranteed income or leave it invested and drawdown income from the invested fund
- Assets held within the pension fund are usually exempt from Inheritance Tax
- Assets within the pension fund can be passed tax efficiently to your beneficiaries on death
Starting early and targeting an outcome
Your pension savings will almost certainly form the core part of your retirement income alongside your State Pension and other investments you may hold. We work with you to look at the whole picture and build you a plan to target the income you require in retirement. Making a start as early as possible will increase your chances of building a fund sufficient to meet your needs.