If you’re not in a job where pensions come as part of the package – like teaching or the police – deciding how to make provisions that will allow you to enjoy your retirement to the fullest can seem very complicated.
Changes to Pension legislation have been numerous over the past few years. Let’s take a look at some of them –
- All businesses, both large and small, are being asked to set up workplace pensions and both employers and employees will pay contributions to the chosen scheme (auto-enrolment).
- At the end of the saving period the pension will no longer have to be placed into a poor value annuity.
- From April 2015, people have been free to draw their pension as and when they wish. Pension companies have responded with Flexible Drawdown Contracts
- The amount individuals can put into personal pensions has been capped to either full years income up to £40000
- And the latest comes in for people under the age of 40 as Lifetime Individual Savings Account with a larger injection from the government than a personal pension, coming into play April 2017
These changes have raised concerns about people having the ability to take out all of their savings and the subsequent tax implications – as well as the possible impact on our retirement plans. Negotiating the many options available can seem daunting, which is why we always recommend speaking to an independent financial adviser.
Anderson Lloyd can provide expert pension advice – whether it’s your personal pension, occupational pension or state pension, making an informed decision now can give you peace of mind for the future. Depending on what stage of life you’re at, we can either help you start saving or adjust your current pension plan to ensure that you’re getting the best deal on the market.
If you’re starting out
Putting the right strategy in place from the offset is invaluable which is why we recommend talking it through with one of our independent financial advisers.
If you already have something in place
Pensions change continuously, particularly the charging structures and that is why we suggest reviewing your pension plans annually to ensure that your money is invested correctly and in accordance with your attitude to risk
As your income grows or declines you may want to adjust the amount you’re paying into your pension – this can be done by changing your premiums or adding a lump sum. Circumstances change over the years, your personal financial adviser will be able to guide you through the options available and design a plan to help you make the most of your pension fund.
From October 2012, new legislation meant that every employer was required to have a pension scheme in place, automatically enrolling certain workers and making pension contributions on their behalf.
There are an array of corporate pension services on the market right now and our advisers are fully informed on the new legislation. The Government recommends employers seek professional advice to carefully guide them through this process, but we are more than happy to talk to employees about the scheme too.