A guide to. 10 Fairfield Road, Buxton Derbyshire, SK17 7DW.

Transcription

1 A guide to. 10 Fairfield Road, Buxton Derbyshire, SK17 7DW

2 YOUR GUIDE TO Retirement in today s modern world is not quite what it used to be. In many ways it is seen as been better: People are living longer Enjoying healthier and Enjoying active retirement years. On the financial side, things are not quite as positive. For a variety of reasons, the goal of a financially secure retirement is becoming increasingly more & more difficult to achieve. The aim of this guide is to highlight some of the issues you may need to consider if you wish to enjoy the comfortable retirement you truly deserve. While being able to retire may not quite be your number 1 most important financial objective right now, sooner or later it will be. The earlier that you start to focus on your retirement needs and plans for meeting them, the more time you will allow yourself to invest and the more time your investments will have to grow. Today many people are heading towards their retirement with insufficient/inadequate savings, and many even have substantial personal debts. Personal debt in the UK currently stands at an estimated 1.5 trillion, with consumer credit reaching in excess of 214 billion. Meanwhile, retirement periods are becoming longer. Government figures suggest that life expectancy at age 65 has now reached the highest level for both men and women. For many, the whole picture adds up to a pensions shortfall. However, we can help you take steps to ensure that your retirement is as financially secure and comfortable as possible. Working out how much you ll need to save to create a retirement pot capable of securing the comfortable retirement you desire. Tax-Advantaged saving for your retirement. Using your business to help fund your retirement.

3 There are various options available for funding retirement. Below lists some of the most common: Currently there are two kinds of company pension schemes, into which you and your employer may make contributions. A defined benefit scheme pays a retirement income related to the amount of your earnings, whilst a defined contribution scheme reflects the amount invested and the underlying investment fund performance. In both cases, you will have access to tax-free cash as well as the actual pension. You should receive annual statements that include valuations of the pension fund and forecasts of the income it might provide on your retirement. With the state pension in 2013/14 worth just below 9,200 for a married couple, the ability to live of this alone is almost likely an unrealistic proposition. To receive the full state pension, it is necessary to have made a minimum of 30 years of national insurance contributions. For a forecast of your state pension, phone the State Pension Forecasting Team on This service will be able to advise if there are years for which additional benefits can still be bought. If you are not currently in a company scheme, you should start thinking about making your own pension arrangements, through personal pension policies or existing retirement annuity policies. Whether or not you invest through personal pension policies or retirement annuity policies, your investment will, subject to limits, qualify for tax relief. However pension input exceeding the annual allowance may be subject to a tax charge, payable under self assessment by the investor. Where premiums are paid into the pension input periods ending in the proceeding three years are less than 40,000, unused relief may be carried forward. The lifetime allowance on money that can be accrued in a pension fund and still receive tax relief, is 1.25 million from April 2013.

4 Alternative options may include Self Invested Personal Pension schemes (SIPPs), which generally gives the investor a relatively high degree of influence on how funds are invested. At some point in time, you may wish to dispose of your business interests and invest the proceeds. Whilst this may seem some years away, and the business will continue to generate your income for now, at some point you may decide to realise its capital value. Maximising on this value and paying the minimum amount in capital taxes are an important goal. There are at least two ways to make your home boost your retirement finances. Although this may not be suitable for everyone. The First is down-sizing selling your current home and buying something cheaper which then releases the value now tied up in your property. If you wish to continue living in the same property, equity release may also be something worth considering. Equity release isn t suitable for all families, and you will need to discuss all the implications with us and an independent financial advisor. Savings in ISA s and other bank/building society accounts as well as other vehicles, such as stocks and shares, insurance policies, property and valuables such as art or other collections could also be taken into account when developing a retirement strategy.

5 Why don t you complete this checklist, and then make an appointment to discuss the retirement requirements with us? We can then use this a starting point, to help you & us to create a strategy that is tailored to your individual needs to realise your retirement aspirations. Yes (when was it last reviewed? ) No, but I would like to develop one. Live independently Travel frequently Buy and enjoy the things I want Minimise Taxes Help my children/heirs Pursue hobbies and interests Other Pension plans ISAs, stocks and shares Insurance policies Savings Art, collections and other valuables Other assets

6 Non-Statutory Audit Business Risk Services International Accounting Standards Corporate Finance Financial Reporting Self Assessment/Personal & Partnership Tax Corporation Tax Capital Gains Tax PAYE and national insurance compliance H.M.R.C assessments/investigations Value Added Tax Year End Accounting Finance Department Outsourcing Management Reporting Payroll Business start-up planning Review/Advice Financial management & Forecasting Strategic and business planning Corporate/Business Strategies Operational/Functional Analysis Programme/Project Management & Review ICT Consultancy Management Consultancy Management & Retail Audits Preparation of statutory returns Preparation of minutes & resolutions Company searches Company formations This guide is for general guidance only. ABS Accountancy Ltd accepts no liability for any action taken or actions refrained from in consequence of the information contained within this guide. We always recommend that you seek professional advice from an accountant or other professional before acting.