banners 13

Retirement planning and pensions

 

 

One of the key objectives of any retirement plan is the provision of adequate income in retirement. The state pension has been shrinking in relation to average earnings for years, therefore anyone seeking a comfortable retirement will need their own provision. Retirement for many will mean living on a smaller income than previously enjoyed, but through effective financial planning it is possible to minimise the change in financial circumstances. 

We offer financial advice on all areas of investing for retirement, including personal pensions and self invested personal pensions and various others. We help you plan a retirement strategy which has the best chance of achieving your retirement objectives, suits your attitude to risk and has the flexibility you desire.

For more information on how we can help in this area, please contact us.

 

A Self invested personal pension (SIPP) is a personal pension arrangement that offers greater investment flexibility relative to some of the other pension arrangements. A SIPP offers you a tax efficient way to build up a fund to use when you retire. If you are self employed, or your employer does not have a company pension scheme, a SIPP could be the right way to save for your own retirement. SIPP can also be used to top up the benefits you will receive under a company pension scheme.

Key features

  • Flexible contributions - you can make monthly or annual and single contributions.
  • Wide choice of ethical investments, including funds and shares
  • Tax relief on your contribution when you save into a pension, the government automatically pays 20% of your contribution. If you pay 40% or 45% income tax, you can claim back more through your tax return. The amount of higher tax relief available depends on your income.
  • Tax-free growth within a pension, there is no capital gains tax or income tax to pay, so your investments can grow free of tax. Less tax means greater growth potential.
  • Tax-free cash when you retire from age 55; you can normally take up to 25% of your pension as a tax-free cash lump when you retire, with the remainder used to provide a taxable income for life.

For more information on how we can help in this area, please contact us.

 

We can help review your existing pension arrangements and devise a bespoke retirement plan that meets your objectives.

It is crucial that your pension arrangements are continuously reviewed to ensure that you are always receiving the best on offer at any given moment in time. There are many reasons why you may wish to review your current pension scheme whether it be compliance with your ethical values, poor performance, issues over the security of the pension scheme, or a need to improve flexibility. At Simply Ethical, we can offer a comprehensive review of your pension arrangements and recommend the most suitable solution that meets your objectives.

For more information on how we can help in this area, please contact us.

 

Throughout your lifetime, you may have worked for several employers to further your career prospects. 'Job for life' for many is not an option as you move up your career ladder to achieve broader experience and off course better remuneration. As you change jobs more frequently during life, you may have accumulated a number of small pensions along the way. It can be hard to keep track of all the pension plans and difficult to really know how much your total retirement benefits is worth. As a result, many individuals like you may have found your pension plans becoming increasingly fragmented therefore in most cases being left unmanaged in an increasingly volatile market.

At Simply Ethical, our pensions consolidation and management service helps you get the maximum benefit from pension arrangements left behind with your previous employers. Consolidating all your pensions with one provider may help reduce charges, increase investment options and make it easier to administer. We can help by reviewing your existing circumstances and advise whether or not it is in your best interest to consolidate.

An example of how this works:

Mr Ali has worked with 2 previous employers where he has his pensions. In addition, he has 2 personal pensions (SIPPs) with different providers. Our Financial Adviser will understand Ali's objectives, personal circumstances and review each pension plan, if deemed suitable for him he may be advised to transfer all these pensions to one pension plan recommended by Simply Ethical Financial Adviser. Our Financial Adviser and Investment Manager will work together to devise a suitable investment strategy that works for Ali. The investment portfolio will be actively managed on a discretionary basis.

For more information on how we can help in this area, please contact us.

 

There is a great deal of scope for the interplay between pension provisions and tax planning. Pensions not only help save for retirement but also acts as a tax saving vehicle throughout the business owners’ working lives. Since business owners need greater control and flexibility, pensions such as SIPP and SSAS may be ideally suited to meet their personal and business requirements.

How we can help:

  • Review your existing pension arrangements for performance and compliance
  • Advice on effectively utilising your SIPP & SSAS
  • Help set up and manage your SIPP or SSAS

What is s SIPP?

A Self invested personal pension (SIPP) is a personal pension arrangement that offers greater investment flexibility relative to some of the other pension arrangements. SIPP is particularly useful for owners of small businesses, who can buy premises through their pension funds. A SIPP can borrow up to a maximum of 50% of the net fund value, for example to purchase company premises for leaseback. This would help mitigate corporation tax through rent deductions and when the property is sold by the pension fund there will be no capital gains tax to pay.

Key features

  • Greater investment control
  • Income tax relief (and corporation tax and national insurance relief on company contributions)
  • Invest significant single or regular contribution
  • Transfer funds from previous underperforming pension arrangements
  • Wide choice of ethical investments
  • Purchase unquoted shares
  • Commercial property purchase
  • Borrow for property purchase
  • Flexible retirement options

What is a SSAS?

Small Self Administered Scheme (SSAS) offers business owners choice and flexibility while building a pension fund. Contributions paid to a SSAS are subject to the same rules as other registered pension schemes. This means there is no limit on the level of member contributions but tax relief is restricted to the higher of £3,600 or 100% of UK earnings. Contributions made by the employer are also unlimited.

With effective planning, you can make your SSAS work for your business, whilst simultaneously building a substantial pension fund to benefit yourself and your family in retirement. For example, the pension fund may be used to own your company premises for leaseback or in tough economic times the pension fund can be used to finance your business.

Key features

  • There must be fewer than 12 members
  • Greater investment control
  • Income tax relief (and corporation tax and national insurance relief on company contributions)
  • Invest significant single or regular contribution
  • Transfer funds from previous underperforming pension arrangements
  • Purchase unquoted shares
  • Commercial property purchase
  • Borrow for property purchase
  • Loans to the company
  • Flexible retirement options

For more information on how we can help in this area, please contact us.


...Stay connected