Planning a prosperous retirement

Size: px
Start display at page:

Download "Planning a prosperous retirement"

Transcription

1 Planning a prosperous retirement Towry s Guide to Retirement Planning

2 About Towry We are one of the UK s leading Wealth Advisers and specialise in providing high quality, expert financial advice to private individuals, families and trustees. Established over 50 years ago, we have 20 offices across the UK and look after the financial needs of over 25,000 clients. When you seek advice from Towry, you have the reassurance of knowing that all our Wealth Advisers are highly qualified. In fact, the majority have achieved Chartered Financial Planner status, the highest professional qualification in the industry. One important difference of our service is the fact that our advice is Towry s advice, rather than the view of one individual. We achieve this by working as a team, using our wealth advisers, wealth planning and technical financial planning experts, as well as our specialist investment management team. This combined expertise helps to deliver the best possible financial advice to all our clients. What sets us apart from other advisers is that we believe that your financial decisions should be made as part of a lifetime financial plan which is structured to help you achieve your short and long-term financial goals. Any retirement planning strategy should be developed in the context of this wider financial plan. 2

3 Achieving your dream retirement Retirement means different things to different people. For some, it s a time for relaxing or taking a well-earned rest after a busy career. For others, it s an opportunity to travel, spend more time on hobbies or to achieve all the lifetime ambitions still left on their wish list. What s more, in today s modern world, retiring is now often a gradual process. Many choose to slowly reduce their working hours rather than stopping work altogether. Others mix some voluntary work alongside their ongoing professional paid work. Whatever your aspirations, one thing is certain it s very important to plan ahead. Having a plan is crucial Many people move into retirement with little or no idea of whether they have sufficient money to fund the lifestyle they dream of. Deciding on the type of retirement you want well in advance is therefore vital the sooner you start planning ahead the better. This retirement guide is designed to give you an overview of some of the main challenges of planning for retirement and how you can overcome them. It also considers how to establish whether you are prepared for retirement or not and looks at the ways to make your savings work harder for you both before and in retirement. It is important to bear in mind that this guide will only give you a broad outline of the areas you need to consider prior to and in retirement. We believe getting expert professional advice can make all the difference to whether you achieve your goals or not. One of our Wealth Advisers can work with you to put together the right retirement plan for your particular circumstances. 3

4 Retirement planning three important considerations Even if you have a plan for your retirement there are many things that are often overlooked. Three of the main considerations are increasing longevity, health and inflation. These factors, if overlooked or ignored, can seriously impact your finances in retirement. 1. Longevity People are living longer today than ever before. Life expectancy at age 65 in England and Wales has now reached 18.2 years for a man and 20.8 years for a woman 1. Increasing longevity is great news for us all, however, this presents the real danger of your money running out before you die. Of course, you cannot predict when you are going to pass away but planning for a retirement that may last well over 20 years is a sensible approach. 2. Health As we all know, the likelihood of getting seriously ill increases with age. Unfortunately, this may mean that you have to enter into longterm care at some stage of your life. Long-term care can be very expensive the average annual cost of a room in a care home is now estimated at 28, The Government has announced plans to introduce a lifetime cap on personal contributions to long-term care costs currently expected to be around 72,000. However, it is anticipated that this cap may only apply to healthcare costs and so may well exclude other costs such as those for accommodation and food. 3. Inflation Inflation can be a considerable problem for retirees, especially for those on fixed incomes. Inflation diminishes the true purchasing power of an income over time but its long-term effects are often underestimated. Inflation, as measured by the Consumer Prices Index (CPI), was relatively low in 2013 at around 2% 3 (the CPI measures the price increase of a basket of goods and services). 1 Office for National Statistics, Interim Life Tables, England and Wales, March Prestige Nursing + Care, average cost of care home per year, August Office for National Statistics, December

5 Rising prices may actually have a greater impact on retirees than the official inflation figure suggests. This is because the elderly typically spend a disproportionate amount of their income on items that are prone to higher inflation, such as utilities, food and fuel. It is fair to say that the cost of living typically rises more quickly for retirees than for the population as a whole. The graph below illustrates that even a low inflation rate can substantially eat into the buying power of your retirement income over the years. The impact of inflation 60,000 50,000 40,000 30,000 20,000 10,000 0 Value at 0 years Value at 5 years Value at 10 years Value at 15 years Value at 20 years Value at 25 years 5

6 How might your retirement pan out? Of course, no one knows for certain how long they might live and whether they have enough assets to see them through a comfortable retirement. However, a very effective way of building a broad understanding of what your retirement might look like can be through a lifetime cashflow analysis. A cashflow analysis looks at all your assets, any income and planned expenditure. It can also build in inflation and assumptions on investment returns (based on your attitude to risk). An illustration is then produced which gives you an idea of when your money may run out. It also provides you with a good understanding of whether you need to save more for your retirement or if you have already saved enough. In essence, it s designed to give you a good indication of whether your plan for retirement is achievable or not. An example lifetime cashflow is shown in the chart opposite. This scenario shows an individual, Mr Smith, building up his assets until he retires at age 65. Slowly but surely his assets are spent as he goes through retirement. It indicates that Mr Smith s assets are likely to run out at around age

7 Will you outlive your money or will your money outlive you? 600, , , , , , , , , , ,000 50, , , , , , , , Age (years) A lifetime cashflow analysis needs to be undertaken with the help of a trained financial adviser who has experience of performing this type of analysis. At Towry, we specialise in providing this service to our clients. If you feel you could benefit from this perspective on your retirement plans, please contact us. Protecting those that matter One area many people overlook when planning for retirement is protecting themselves or their loved ones from the impact of a serious illness or an early death. Prior to retirement gaining protection is generally more straightforward. Life assurance, income protection and critical illness products tend to be more affordable. However, as you get older, the cost of protection products may become prohibitive and the surviving spouse may have to live off their assets to see them through their retirement. Again, we can help you look at this through a cashflow analysis. This will show you how you or your spouse might cope financially on the death of one of you. This might assume, for example, that one of you passes away at age 55 or 60. The analysis will then show how this impacts the finances of the surviving partner. 7

8 Saving for your retirement How much you save for your retirement will obviously have a huge bearing on whether you are able to achieve your dream retirement or not. The amount you put aside will invariably depend on your personal circumstances and your priorities at any given time. However, no matter how much you are saving, it s important to invest as tax efficiently as possible. This is because sheltering your investments from tax can significantly boost your returns over the longer term. The taxman provides UK residents with many generous allowances which can be used for saving for retirement. We have highlighted some of the main ones here. Pensions Pensions will form the bedrock of most retirement savings plans. This is because they are highly tax efficient. Tax relief is given on your contributions (up to certain limits) and your pension investments can grow free from income and capital gains tax. There are also benefits when you reach retirement you can typically take 25% of your pension fund as a tax-free lump sum. Additionally, if you die before taking benefits from your pension, there is normally no inheritance tax liability for your beneficiaries. It is important to remember that you cannot usually take benefits from a pension until you reach the age of 55 (in most cases you cannot gain access to your pension savings before this age). However, on reaching this age, you don t have to retire in order to start taking benefits. Any income you receive from a pension at any stage is taxable. 8

9 Individual Savings Accounts (ISAs) ISAs can be particularly valuable to retirees. This is because they can deliver a tax-free income (pension income is taxable). ISAs do not offer the same tax benefits as pensions when contributing but returns are free from both income and capital gains tax. Another attractive feature of ISAs is that you can access your capital at any time, although the tax benefits will be lost forever when you cash them in. Additionally, ISAs form part of your estate on death. Each individual has an ISA allowance of 11,880 in 2014/15 (rising to 15,000 on 1 July 2014). Capital Gains Tax (CGT) allowance The CGT allowance is frequently overlooked by many individuals. However, it can be an extremely useful allowance, particularly for people with sizeable portfolios of non-tax wrapped investments. An individual can realise gains of 11,000 in 2014/15 without incurring CGT, which can then be reinvested or spent as appropriate. The type of investments you hold within your various retirement savings accounts will depend on a number of factors, including your attitude to risk, capacity for loss and how close you are to retiring. Getting the right mix of investments for your own personal circumstances is extremely important and Towry can help put together an appropriate investment strategy for you. Pensions contributions your allowances If you are under 75, you can normally contribute up to 100% of your annual earnings and you will be entitled to tax relief on these payments (up to the annual limit) If you have any unused annual allowance from the previous three tax years, you can potentially invest more than the annual limit by taking advantage of the carry forward rule Non-taxpayers can contribute 2,880 each year and the government tops this amount up to 3,600 The annual limit for tax relief on your total contributions, including those from your employer, is 40,000 for 2014/15 There is a lifetime allowance on the value of all your pensions, which is 1.25 million for 2014/15. A tax charge of up to 55% is payable if you exceed this limit. 9

10 Generating an income in retirement As we have already mentioned, the nature of retirement is changing. Encouraged by the Government s phasing out of the default retirement age, many individuals are now choosing to work into their 70s and even into their 80s. As a result of increasing life expectancy, the age at which the state pension is paid is also gradually being increased over the next few decades. This means retirement is now not necessarily a one-off event for an ever-growing number of people it is becoming more of a gradual process. An individual may well choose to slowly reduce the hours they work over a number of years while increasing the hours they enjoy outside of work. Gradual retirement makes it more important for individuals to know and make use of all the available tax allowances when planning their income. This is because the effective use of tax-advantaged products can provide you with much greater flexibility. The chart opposite gives an example of how gradual retirement can work. It shows how an individual s employment income gradually reduces and is replaced by a mixture of pension income and income/capital from nonpension assets such as ISAs over time. 10

11 Utilising different sources of income through a gradual retirement Employment income Non Pension Assets (such as ISAs) Pension The mix of different sources of income will, of course, vary according to an individual s needs and circumstances. If you are considering utilising a similar strategy through your retirement, we recommend you seek advice to establish the best approach for you. Taking an income from your pensions Unless you are lucky enough to have a Final Salary pension scheme, you are likely to face a choice at retirement of how to generate an income from your pension savings. The two options you have are purchasing an annuity or entering into what is known as income drawdown. Annuities An annuity is normally bought with the proceeds from your pension scheme and it will provide you with a guaranteed income for life. An annuity will probably be the most appropriate option for the majority of individuals (at least in part). There is a wide range of single life annuities available in the UK and options include: A level annuity which pays the same level of income to you for life An increasing annuity which provides some protection against inflation (although the starting income will usually be lower than that of a level annuity) An impaired annuity which pays a higher income to those with health issues One of the drawbacks with single life annuities is that they normally die with you (an annuity does not form part of your estate on death). The exception to this is if you have purchased a joint life annuity, which pays an income to a surviving spouse or partner for the rest of their life. Once you have bought an annuity you cannot usually change your mind. Choosing the right one for you is therefore very important and we recommend that you should seek advice before making a purchase. 11

12 Income drawdown Drawdown is a more flexible way of taking a retirement income. You take an income directly from your pension fund and the level of income can be varied to suit your needs (normally within a certain limit). However, your income isn t guaranteed and so drawdown is normally only suitable for individuals with larger pension pots. One of the main attractions of income drawdown is that your funds remain invested and so you can still potentially benefit from investment growth. This means there is greater potential for your pension income to keep pace with inflation, although this will depend on the investment returns you achieve and how much income you withdraw each year. However, this also means the value of your pension fund can go down. Income drawdown can also be used to delay purchasing an annuity (annuity rates typically improve with age, although this isn t guaranteed). As with an annuity purchase, drawdown allows you to take a 25% tax-free lump sum on retirement. However, an income does not have to be taken at the same time if you opt to take the lump sum. There are also greater options for passing on retirement savings on death with income drawdown (subject to a potential tax charge). There are two different types of drawdown available capped and flexible and the features of both methods are highlighted below. Income drawdown is usually only appropriate for certain individuals and so taking advice is very important if you are considering this route. Please note that regular reviews are normally required if you enter into an income drawdown arrangement. The government has announced that it is consulting on adding further flexibility in relation to withdrawing income from pension. Any changes are expected to be in place in the 2015/16 tax year. Capped versus flexible drawdown Capped drawdown You can take an income up to approximately 150% of the alternative annuity that your pension fund could have purchased Flexible drawdown This option is only available to individuals with a secured income of 12,000 pa (from state pensions, annuities and, in most cases, occupational pensions) There is no minimum income withdrawal requirement You are required to review the maximum income you can take every three years up to age 75 and annually thereafter You can withdraw as much or as little income as you like from your pension pot (you can withdraw the whole amount or nothing at all if you so choose) 12

13 The best of both worlds Another option open to you is to use some of your pension fund to purchase an annuity while utilising income drawdown for the remainder of your pension pot. This can provide you with a certain level of guaranteed income through the annuity purchase which is boosted by income taken through drawdown. Phasing your retirement Income drawdown can also be used within what is known as phased retirement. With this strategy your pension fund is divided into lots of separate pots or segments. You then gradually release or take the different income segments over time enough to provide you with sufficient tax-free cash and taxable income each year while the remaining segments stay invested. You also have the option of just taking the tax-free lump sum element from each segment while taking no income at all. One of the main attractions of this approach is that death benefits are maximised. The uncrystallised segments of your pension (the segments where no benefits have yet been taken) will be paid tax free to your beneficiaries in the event of your death before age 75. The crystallised segments can also potentially pass to your beneficiaries through income drawdown, subject to a possible tax charge. It is also possible to phase your retirement through a series of annuity purchases. 13

14 Reviewing your plan A retirement plan should never be set in stone as individual circumstances and tax allowances can and do change. Investments and their performance should also be frequently assessed. As you approach retirement, for example, it may well be appropriate to switch more of your investments into safer, more secure assets. Regular reviews of your plan are therefore very important we recommend once a year. The information in this brochure is based on our understanding of proposed and current tax legislation. Whether any tax will be payable, at what level it is charged and whether you qualify for tax relief will depend upon individual circumstances and may be subject to change in the future. This document is solely for information purposes and is not intended to be, and should not be construed as investment advice. 14

15 Next steps This guide has been designed to give you a broad picture of what you need to consider when planning for and on reaching retirement. Retirement planning is very important, especially for people with complex affairs, and we recommend that you seek regular advice from a highly-qualified adviser. To arrange an initial discussion with a Towry Wealth Adviser, call or visit 15

16 Towry Limited Towry House Western Road Bracknell RG12 1TL If you would like to know more about Retirement Planning, please get in touch to discuss how we can help you. Call or visit Towry Limited is authorised and regulated by the Financial Conduct Authority. TA1450

A personal approach to financial planning. Welcome to Towry. www.towry.com

A personal approach to financial planning. Welcome to Towry. www.towry.com A personal approach to financial planning Welcome to Towry www.towry.com I have been advised by Towry for approximately six years and have been delighted by the highly personalised service they provide.

More information

Preserving your wealth for future generations. Towry s Guide to Estate Planning

Preserving your wealth for future generations. Towry s Guide to Estate Planning Preserving your wealth for future generations Towry s Guide to Estate Planning About Towry We are one of the UK s leading wealth advisers and specialise in providing high quality, expert fi nancial advice

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

Pension benefits guide How you can use your pension pot to suit your needs

Pension benefits guide How you can use your pension pot to suit your needs Pension benefits guide How you can use your pension pot to suit your needs axawealth.co.uk With the flexibility you have to take benefits through your pension, it can be difficult to know what s best for

More information

Basic Guide to Retirement Income Options

Basic Guide to Retirement Income Options Basic Guide to Retirement Income Options Can I afford to retire? Which retirement income solution is best for me? Should I take all my tax-free cash entitlement? Will my family benefit from my pension

More information

April 2015: Forthcoming Pension Changes. Retirement options for money purchase pension schemes (including SSAS).

April 2015: Forthcoming Pension Changes. Retirement options for money purchase pension schemes (including SSAS). April 2015: Forthcoming Pension Changes Significant changes to pension regulations are being introduced on the 6 th April 2015. The legislation will be covered in the Taxation of Pensions Bill 2014 and

More information

Your guide to Annuities

Your guide to Annuities Your guide to Annuities From Standard Life It s good to know what s around the next corner 1 of 24 If you would like a secure source of income and have a built up pension fund or a lump sum to invest,

More information

The Retirement Account. Certainty, flexibility and simplicity for life

The Retirement Account. Certainty, flexibility and simplicity for life Certainty, flexibility and simplicity for life Introducing Retirement Advantage Previously known as MGM Advantage and Stonehaven, we are a well-established company that can trace our roots back over 150

More information

KEY GUIDE. Pensions freedom drawing from your pension

KEY GUIDE. Pensions freedom drawing from your pension KEY GUIDE Pensions freedom drawing from your pension Radical reform The changes revealed in the 2014 Budget were described by some retirement planning experts as a pensions revolution. The radical proposals

More information

A guide to the pension changes in April 2015

A guide to the pension changes in April 2015 A guide to the pension changes in April 2015 106027837.indd 1 05/01/2015 10:00 Contents What do the changes mean for you? 3 Summary of the changes from 6 April 2015 5 What s changed in practice? 6 How

More information

The Fiducia Guide to Retirement Planning

The Fiducia Guide to Retirement Planning The Fiducia Guide to Retirement Planning September 2012 Fiducia Wealth Management Limited Dedham Hall Business Centre, Brook Street Colchester, Essex, CO7 6AD Fiducia Wealth Management Limited is authorised

More information

25 Must Ask Annuity Questions

25 Must Ask Annuity Questions 25 Must Ask Annuity Questions When Can I Buy An Annuity? Who Is The Best Annuity Provider? Why Do I Need Advice? 1. What is an Annuity? If you have a private pension when you retire you can purchase an

More information

The five-step plan to a better retirement. A step by step guide to organising your finances

The five-step plan to a better retirement. A step by step guide to organising your finances The five-step plan to a better retirement A step by step guide to organising your finances This is one of the biggest financial decisions you ll make so it s important to get it right. At Fidelity we strongly

More information

Guide to SIPPs. Investment Helpdesk: 0131 550 1212. www.cs-d.co.uk

Guide to SIPPs. Investment Helpdesk: 0131 550 1212. www.cs-d.co.uk Investment Helpdesk: 0131 550 1212 www.cs-d.co.uk SIPP stands for Self Invested Personal Pension. SIPPs are a flexible type of personal pension. Like most, they are designed to provide a retirement pot

More information

Your options at retirement

Your options at retirement UPDATED: 6 April 2015 NEW pension freedoms Your options at retirement How to take tax-free lump sums and income, under new pension freedoms One College Square South, Anchor Road, Bristol, BS1 5HL www.hl.co.uk

More information

Financial Planning & Guidance. A Guide to Annuities. Creating your success through Financial Planning

Financial Planning & Guidance. A Guide to Annuities. Creating your success through Financial Planning & Guidance TA Contents I m approaching retirement, what are my financial options? 02 What is a Financial Broker? 03 Why would I need to use a Financial Broker? 03 What is an annuity? 05 A Guide to Annuities

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

Our guide to. buying an annuity

Our guide to. buying an annuity Our guide to buying an annuity 2 Our guide to buying an annuity Contents Introduction 3 Pension reforms Thinking about retirement 3 Money and budgeting How can we help? Your retirement timeline Key questions

More information

Financial Planning & Guidance. A Guide to Annuities. Creating your success through Financial Planning

Financial Planning & Guidance. A Guide to Annuities. Creating your success through Financial Planning & Guidance TA Contents I m approaching retirement, what are my financial options? 02 What is a Financial Broker? 03 Why would I need to use a Financial Broker? 03 What is an annuity? 05 A Guide to Annuities

More information

Conventional Lifetime Annuity Options Your Questions Answered

Conventional Lifetime Annuity Options Your Questions Answered Conventional Lifetime Annuity Options Your Questions Answered 0845 077 7077 (8.30am-6pm weekdays) Calls may be recorded for training and monitoring purposes. www.425fs.co.uk Contents 1. Introduction to

More information

Freedom and Choice in Pensions. Your guide to the changes

Freedom and Choice in Pensions. Your guide to the changes Freedom and Choice in Pensions Your guide to the changes Contents Freedom and Choice 3-5 in Pensions Buy an annuity 6-7 Remain invested - 8-9 entering drawdown Take a cash lump sum 10 Will providers offer

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The point at which you

More information

Life s better when you have a plan

Life s better when you have a plan Life s better when you have a plan FINANCIAL PLANNING. WEALTH ADVICE. INVESTMENT MANAGEMENT. Let s make plans together When making decisions about your financial future, we believe these should be made

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The higher rate threshold

More information

Conventional Lifetime Annuity Options Your Questions Answered

Conventional Lifetime Annuity Options Your Questions Answered Conventional Lifetime Annuity Options Your Questions Answered 0800 014 7470 0333 014 6267 am-5.30pm weekdays. Calls may be recorded for training and monitoring purposes. www.425fs.co.uk Contents 1. Introduction

More information

Guide to Annuity Purchase

Guide to Annuity Purchase Fiducia Wealth Management Limited Guide to Annuity Purchase September 2012 For Professional Advisers Only Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Colchester, Essex, CO7

More information

M&G Guide to Retirement Income

M&G Guide to Retirement Income M&G Guide to Retirement Income 2 Working out how to make adequate financial provision for retirement is one of the most important financial decisions most of us will ever face. However, it can be a daunting

More information

MILSTED LANGDON FINANCIAL PLANNING

MILSTED LANGDON FINANCIAL PLANNING MILSTED LANGDON: BUSINESS ADVANTAGE PEACE OF MIND MILSTED LANGDON FINANCIAL PLANNING WORKING TOGETHER TO PROVIDE A BETTER FUTURE www.mlifa.co.uk/financial-planning advice@mlifa.co.uk CHOOSING THE RIGHT

More information

Pensions made simple. Take control of your future MIND THE GAP

Pensions made simple. Take control of your future MIND THE GAP Pensions made simple Take control of your future MIND THE GAP PENSIONS MADE SIMPLE FROM AVIVA Contents Page 1 First things first 2 2 Why pensions are so important 4 3 How a pension plan works 8 4 The tax

More information

A GUIDE TO FINANCIAL GUIDE. New Pensions Freedom GIVING PEOPLE MORE CONFIDENCE TO SAVE INTO A PENSION

A GUIDE TO FINANCIAL GUIDE. New Pensions Freedom GIVING PEOPLE MORE CONFIDENCE TO SAVE INTO A PENSION FINANCIAL GUIDE A GUIDE TO New Pensions Freedom GIVING PEOPLE MORE CONFIDENCE TO SAVE INTO A PENSION WELCOME Giving people more confidence to save into a pension Welcome to our Guide to New Pensions Freedom.

More information

retirement planning the retirement you want Heineken UK Flexible Retirement Plan

retirement planning the retirement you want Heineken UK Flexible Retirement Plan my retirement planning the retirement you want Heineken UK Flexible Retirement Plan Contents Get an overview of the Heineken UK Flexible Retirement Plan What is the Flexible Retirement Plan? 4 Your benefits

More information

Buying a pension annuity

Buying a pension annuity Buying a pension annuity Why do I need to think about buying a pension annuity? When you come to retire, you will have some important decisions to make. Probably most important of all is how you will generate

More information

With new options available from April 2015, we can help you plan your finances for a worry-free retirement

With new options available from April 2015, we can help you plan your finances for a worry-free retirement Your retirement With new options available from April 2015, we can help you plan your finances for a worry-free retirement Life is full of financial decisions and planning your retirement is one of the

More information

KEY GUIDE. Investing for income at retirement

KEY GUIDE. Investing for income at retirement KEY GUIDE Investing for income at retirement Introduction The decisions you make at retirement could have repercussions for the rest of your life. That might be considerably longer than you think, as the

More information

Accessing your Additional Voluntary Contribution (AVC)

Accessing your Additional Voluntary Contribution (AVC) Accessing your Additional Voluntary Contribution (AVC) Accessing your AVC savings Now is the time to start making decisions about your retirement and your future. One of the most important things to think

More information

The Personal Range Key Features of the Individual Personal Pension Transfer Value Account

The Personal Range Key Features of the Individual Personal Pension Transfer Value Account The Personal Range Key Features of the Individual Personal Pension Transfer Value Account Reference MPEN11/F 07.15 The Financial Conduct Authority is a financial services regulator. It requires us, Friends

More information

Options available when deciding to take pension benefits

Options available when deciding to take pension benefits Options available when deciding to take pension benefits You can now use the money that has built up in your pension fund to provide you with an income in retirement. An income can be provided in any of

More information

Key Features of the NHS Additional Voluntary Contributions (AVC) Scheme

Key Features of the NHS Additional Voluntary Contributions (AVC) Scheme Key Features of the NHS Additional Voluntary Contributions (AVC) Scheme Important information you need to read The Financial Conduct Authority is a financial services regulator. It requires us, Prudential,

More information

Important information. Key Features of the Teachers Additional Voluntary Contributions (AVC) Scheme

Important information. Key Features of the Teachers Additional Voluntary Contributions (AVC) Scheme Important information Key Features of the Teachers Additional Voluntary Contributions (AVC) Scheme > Contents About this booklet 4 About the Teachers AVC Scheme 5 Its aim 5 Your commitment 5 Risks 6 Questions

More information

Your retirement income. Exploring your options

Your retirement income. Exploring your options Your retirement income Exploring your options Contents 02 What do you want to do with your pension fund? 07 A regular retirement income for the rest of your life 10 A flexible income from a Self Invested

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED.

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. Following Government changes effective on 6 April 2015, there are different ways for anyone over 55 to access their defined contribution pension pots

More information

Your Wealth. In this newsletter. november 2014. A newsletter from our personal financial planning team

Your Wealth. In this newsletter. november 2014. A newsletter from our personal financial planning team november 2014 Your Wealth A newsletter from our personal financial planning team In this newsletter 2 Freedom and choice in pensions 4 Saving for retirement Pension or NISA? 6 For peace of mind, opt for

More information

Provide for your loved ones. A guide to death benefits from your pension plan

Provide for your loved ones. A guide to death benefits from your pension plan Provide for your loved ones A guide to death benefits from your pension plan This guide covers the death benefits from the following plans: Self Invested Personal Pension Group Self Invested Personal Pension

More information

Your Guide to Pension Freedom

Your Guide to Pension Freedom Your Guide to Pension Freedom 3 From April 2015, individuals will have more freedom to access their pensions. These changes mark a radical departure from the existing system, by giving you greater choice

More information

Key Features of the Local Government Additional Voluntary Contributions (AVC) Scheme for England & Wales

Key Features of the Local Government Additional Voluntary Contributions (AVC) Scheme for England & Wales Key Features of the Local Government Additional Voluntary Contributions (AVC) Scheme for England & Wales Important information you need to read The Financial Conduct Authority is an independent financial

More information

Pensions Tax Reliefs

Pensions Tax Reliefs Our Vision Pensions Tax Reliefs To become the Best Provider of Solutions for Businesses in Coventry & Warwickshire Types of pension schemes There are two broad types of pension schemes from which an individual

More information

Information about tax relief, limits and your pension

Information about tax relief, limits and your pension Information about tax relief, limits and your pension Published: August 2015 Laws and tax rules have changed in 2015. The information here is based on our understanding in August 2015. Your personal circumstances

More information

UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT

UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT CONTENTS My Future 2 Your Family 2 Your Property 3 Your Assets 3 Your Future Summary 4 Your Retirement 4 Your Future Income 5 Details & Events

More information

SELECT SIPP. Taking pension benefits guide

SELECT SIPP. Taking pension benefits guide SELECT SIPP Taking pension benefits guide Please read this guide in conjunction with the Alliance Trust Savings Handbook and the appropriate Key Features documents. Alliance Trust Savings does not give

More information

Our Guide to the 2015 Pension Reforms

Our Guide to the 2015 Pension Reforms Our Guide to the 2015 Pension Reforms The overhaul of the pension system will significantly impact your retirement planning, opening up a whole new world of flexibility over how you spend, save and invest

More information

guide to pension tax relief.

guide to pension tax relief. guide to pension tax relief. introduction tax benefits of pensions tax relief maximum contributions how to make a pension contribution what next? introduction tax benefits of pensions tax relief maximum

More information

SIPP ISA Dealing Junior ISA SIPP benefi ts guide

SIPP ISA Dealing Junior ISA SIPP benefi ts guide SIPP ISA Dealing Junior ISA SIPP benefits guide Contents Introduction SIPP benefits - the basics Annuity, income drawdown and taxable lump sums the commitments and risks 3 Your benefits options Lump sums

More information

Our Services www.pembrokefinancial.co.uk

Our Services www.pembrokefinancial.co.uk Independent Financial Advisers One less thing to worry about... A Guide to Our Services www.pembrokefinancial.co.uk About Our Services We are Independent Financial Advisers (IFA s) working in partnership

More information

Your pension: it s time to choose

Your pension: it s time to choose Your pension: it s time to choose Thinking about retiring Deciding how to take your retirement income Shopping around for the best income The Money Advice Service is independent and set up by government

More information

KEY FEATURES OF YOUR BUYOUT BOND ILLUSTRATION KEY FEATURES. and Conditions, available from your financial adviser.

KEY FEATURES OF YOUR BUYOUT BOND ILLUSTRATION KEY FEATURES. and Conditions, available from your financial adviser. 00000 Old Mutual Wealth Life Assurance Limited is a provider of long-term life assurance. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential

More information

Additional Voluntary Contributions

Additional Voluntary Contributions Additional Voluntary Contributions Working in partnership with the Universities Superannuation Scheme to help you towards a more comfortable retirement Will you have enough money for retirement? As a member

More information

TRUST AND ESTATE PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING YOUR WEALTH

TRUST AND ESTATE PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING YOUR WEALTH TRUST AND ESTATE PLANNING 1 About St. James s Place At St. James s Place Wealth Management we offer a wide range of high quality services to both individuals and businesses. At the heart of the business

More information

Annuities. A Quick Guide. CIB Retirement Solutions

Annuities. A Quick Guide. CIB Retirement Solutions CIB Retirement Solutions Annuities A Quick Guide CIB Retirement Solutions Beta House, Laser Quay, Culpeper Close, Rochester, Kent. ME2 4HU Tel: 01634 729990 Fax: 0845 528 1116 Email: pensions@cibretirement.com

More information

Guide to Retirement Planning 2014/15

Guide to Retirement Planning 2014/15 Guide to Retirement Planning 2014/15 Retirement isn t what it used to be. In many ways it is better: people are living longer and enjoying healthier and more active retirement years. On the financial side,

More information

Collective Retirement Account

Collective Retirement Account Key features of the Collective Retirement Account The Financial Conduct Authority is a financial services regulator. It requires us, Old Mutual Wealth, to give you this important information to help you

More information

Planning. Income & Expenditure

Planning. Income & Expenditure Planning Retirement Cashflow Planner Once salary details and amount of net income required at retirement are input, calculator will then look at the client s assets and expected growth to retirement together

More information

Pensions Tax Reliefs. 03333 219 000 advice@bishopfleming.co.uk. www.bishopfleming.co.uk

Pensions Tax Reliefs. 03333 219 000 advice@bishopfleming.co.uk. www.bishopfleming.co.uk Pensions Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Workplace pension schemes Personal Pension

More information

Pensions - Tax Reliefs

Pensions - Tax Reliefs Pensions - Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension schemes.

More information

Pensions Tax Reliefs. Factsheets. What are the tax breaks and controls on the tax breaks? Types of pension schemes

Pensions Tax Reliefs. Factsheets. What are the tax breaks and controls on the tax breaks? Types of pension schemes Factsheets Pensions Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension

More information

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions PASSING ON YOUR PENSION A guide to death benefits from income drawdown Retirement Solutions It s now easier than ever to pass any remaining money in your pension to the people you love when you die. New

More information

A Guide to RETIREMENT PLANNING

A Guide to RETIREMENT PLANNING A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING YOUR WEALTH Contents 3 Retirement planning guide 4 Retirement - the facts 5 How much will you need in retirement? 7 Investing for your retirement 8 What

More information

G4S Personal Pension Plan Employee Guide

G4S Personal Pension Plan Employee Guide G4S Personal Pension Plan Employee Guide Expiry 05/04/16 Section Page number Introduction 1 Contacts 1 What the Plan can offer you 2 How does the Plan work? 3 Contribution levels 4 Contribution limits

More information

A clear guide to your retirement options. We ll help you get there

A clear guide to your retirement options. We ll help you get there A clear guide to your retirement options investments pensions PROTECTION We ll help you get there Contents If you are retiring soon 3 Things to consider 4 Your options at a glance 6 Tax-free lump sums

More information

Customer guide to annuities. Understanding your options

Customer guide to annuities. Understanding your options Customer guide to annuities Understanding your options { 2 This guide is intended to provide an overview of your options at retirement, explain the various products available and point out their main advantages

More information

A Guide to Approved Retirement Funds (ARF)

A Guide to Approved Retirement Funds (ARF) & Guidance RF A Guide to Approved Retirement Funds (ARF) A Guide to Approved Retirement Funds Contents I m approaching retirement, what are my financial options? 02 What is a Financial Broker? 03 Why would

More information

HILDA & JOHN ENHANCED ANNUITIES

HILDA & JOHN ENHANCED ANNUITIES HILDA & JOHN ENHANCED ANNUITIES 20 July 2015 OBJECTIVES 1. John would like to secure a known income stream so Hilda can live a bit better should he die in the next few years 2. Ensure you don t have to

More information

Investing for income when you retire

Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

How to... Help your clients use their pensions freedom wisely

How to... Help your clients use their pensions freedom wisely How to... Help your clients use their pensions freedom wisely How To Guide Introduction The new pension freedoms that came into effect in April 2015, may, at first, seem like a very attractive prospect.

More information

The Plan for Your Future

The Plan for Your Future The TJX UK Pension Plan The Plan for Your Future Pension Booklet 2 P age Welcome to the TJX UK Pension Plan To look after your financial future, you need to take a little time out of your present. Setting

More information

Nurturing your investment

Nurturing your investment helping life flow smoothly UNITED UTILITIES PENSION SCHEME Investment choices Nurturing your investment Contents Investment choices 1. A BRIEF GUIDE TO INVESTMENTS A reminder of the main different types

More information

Your Guide to Retirement Options

Your Guide to Retirement Options Your Guide to Retirement Options Contents Introduction 3 Overview 4 Personal Pension Plans/PRSAs 5 Defined Contribution Company Pension Plans 8 Additional Voluntary Contributions (AVCs) 11 Retirement

More information

GUIDE TO ANNUITIES. This guide is designed to provide you with the basic information you need to start thinking about your retirement opportunities.

GUIDE TO ANNUITIES. This guide is designed to provide you with the basic information you need to start thinking about your retirement opportunities. GUIDE TO ANNUITIES It takes many years of planning, saving and sacrifice to build up a significant pension and, after all those years, you want to be sure you are making the most of it. This guide is designed

More information

Financial planning guide For teachers who are approaching retirement

Financial planning guide For teachers who are approaching retirement Financial planning guide For teachers who are approaching retirement Financial planning guide 1 2 Contents Think ahead 4 When did you join? 5 Different rules, at different times 6 What kind of member are

More information

PLANNING THE RETIREMENT YOU WANT

PLANNING THE RETIREMENT YOU WANT PLANNING THE RETIREMENT YOU WANT Charlotte Supply Chain Graduate HEINEKEN UK Flexible Retirement Plan Contents A reminder of... How the Flexible Retirement Plan works 4 The benefits 6 Consider what you

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

Pension Flexibility 2015

Pension Flexibility 2015 Pension Flexibility 2015 Who is likely to be affected? Individuals who have reached the normal minimum pension age, (normally age 55), who have money purchase pension savings in a registered pension scheme

More information

Financial Planning & Guidance RSA. A Guide to Personal Retirement Savings Accounts (PRSAs) Creating your success through Financial Planning

Financial Planning & Guidance RSA. A Guide to Personal Retirement Savings Accounts (PRSAs) Creating your success through Financial Planning & Guidance RSA A Guide to Personal Retirement Savings Accounts (PRSAs) Contents Why should I plan for my retirement? 02 What is a PRSA? 03 What is a Financial Broker? 06 Why would I need to use a Financial

More information

Telegraph Investor SIPP Payment of Benefits Guidance Notes

Telegraph Investor SIPP Payment of Benefits Guidance Notes Under the HMRC pension legislation you can take your benefits from age 55, or younger on ill health grounds (see section below). Please note that you do not have to leave employment to draw your benefits

More information

A Guide to. Small Self Administered Pension Schemes (SSAS)

A Guide to. Small Self Administered Pension Schemes (SSAS) A Guide to Small Self Administered Pension Schemes (SSAS) Prepared by: John Hebblethwaite APFS CFP cm MIoD FRSA Certified Chartered Financial Planner Managing Director April 2014 Contents Introduction...

More information

A Guide to. Self Invested Personal Pension Schemes (SIPPS)

A Guide to. Self Invested Personal Pension Schemes (SIPPS) A Guide to Self Invested Personal Pension Schemes (SIPPS) Prepared by: John Hebblethwaite APFS CFP Chartered Financial Planner Managing Director May 2011 Contents Introduction... 3 Eligibility... 4 Contributions...

More information

KEY FEATURES OF THE PROTECTED RETIREMENT PLAN

KEY FEATURES OF THE PROTECTED RETIREMENT PLAN KEY FEATURES OF THE PROTECTED RETIREMENT PLAN Customer version The Financial Conduct Authority is a financial services regulator. It requires us, LV=, to give you this important information to help you

More information

Defined Contribution Pension Plan. Employee Brochure

Defined Contribution Pension Plan. Employee Brochure Defined Contribution Pension Plan Employee Brochure This brochure describes your Defined Contribution Pension Plan, the aim of which is to help you provide financially for your retirement. This plan is

More information

Contents: What is an Annuity?

Contents: What is an Annuity? Contents: What is an Annuity? When might I need an annuity policy? Types of annuities Pension annuities Annuity income options Enhanced and Lifestyle annuities Impaired Life annuities Annuity rates FAQs

More information

COMMINSURE LIFETIME INCOME ANNUITY.

COMMINSURE LIFETIME INCOME ANNUITY. COMMINSURE LIFETIME INCOME ANNUITY. A retirement income solution now with a Death Benefit Guarantee. A CommInsure Lifetime Income Annuity now offers even more comfort, protection and value with a Death

More information

MORE CHOICE MORE FREEDOM

MORE CHOICE MORE FREEDOM LOOK FORWARD TO MORE CHOICE MORE FREEDOM A guide to Income Release Pension Portfolio royallondon.com WELCOME TO ROYAL LONDON We re a mutual organisation and, unlike a PLC, we don t have any shareholders

More information

A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING 1 YOUR WEALTH

A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING 1 YOUR WEALTH A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING 1 YOUR WEALTH Contents Retirement planning guide 3 Retirement the facts 4 How much will you need in retirement? 5 Investing for your retirement 7 What

More information

A Guide to Retirement Options. Contents

A Guide to Retirement Options. Contents A Guide to Retirement Options Contents 2. Quick Guide 5. Lifetime Annuities (Secured Pension) 6. Single Life and Joint Life Annuities 6. Level and Escalating Lifetime Annuities 6. Impaired Life and Enhanced

More information

Group Flexible Retirement Plan. Staff Guide

Group Flexible Retirement Plan. Staff Guide Group Flexible Retirement Plan Staff Guide Terms and information you may need to know Company Jones Lang LaSalle and any other company participating in the Plan. Contribution rates The contribution rates

More information

It s flexible. Key features of the Flexible Income Annuity. Flexible Income Annuity

It s flexible. Key features of the Flexible Income Annuity. Flexible Income Annuity It s flexible Key features of the Flexible Income Annuity Flexible Income Annuity This is an important document and you should read it before deciding whether to buy your pension annuity from us Purpose

More information

Group Additional Voluntary Contributions Plan Key features

Group Additional Voluntary Contributions Plan Key features Group Additional Voluntary Contributions Plan Key features This is an important document. Please read it and keep for future reference. The Financial Conduct Authority is a financial services regulator.

More information

Flexible Life Plan Key Features

Flexible Life Plan Key Features Flexible Life Plan Flexible Life Plan Key Features This document shows the main points about your plan. Please read it with your personal illustration and keep it with the other documents relating to your

More information

Key Features of the Prudential Personal Pension Scheme

Key Features of the Prudential Personal Pension Scheme Key Features of the Prudential Personal Pension Scheme Important information you need to read The Financial Conduct Authority is the independent financial services regulator. It requires us, Prudential,

More information

T. H. March Financial Planning Limited. A lifetime of experience adding value to you

T. H. March Financial Planning Limited. A lifetime of experience adding value to you T. H. March Financial Planning Limited Bespoke holistic financial planning services for High Net Worth clients along with investment and wealth management advice A lifetime of experience adding value to

More information

REMOVING THE REQUIREMENT TO ANNUITISE BY AGE 75

REMOVING THE REQUIREMENT TO ANNUITISE BY AGE 75 PENSIONS PROFILE MARCH 2011 REMOVING THE REQUIREMENT TO ANNUITISE BY AGE 75 Summary From 6 April 2011, the requirement to buy an annuity by age 75 will be removed. Alternatively Secured Pensions (ASPs)

More information