Historically females have seriously lost out in the pensions world. Many females reach retirement with little or no pension provision. Trying to catch up was a mugs game because having taken 25% of the fund as a tax free cash sum the other 75 % had to be used to purchase an annuity producing a tiny monthly income.
The good news is that you no longer have to purchase an annuity and that inflexible pension plan has suddenly become a very tax efficient savings plan. So now you can take out what you like, when you like. The first 25% of the fund can be taken as a tax free lump sum. The remaining 75% can also be taken as a lump sum but you will pay tax on it as if it is your earned income.
The even better news is that if you have no other income you can take up to £10,600 per annum without paying any tax.
Who could benefit from this? Virtually anyone – particularly if they think they may have lost out in the past, provided they are not yet 75. Even if you are not working you can get £3,600 a year saved for you at a cost of only £2,880 and then with the right planning get it all out tax free.
If you have modest earned income and some savings it gets even better. You can transfer your savings (up to the level of your earned income) into a pension plan and the tax man will add in another 20% even if you didn’t pay tax on that income.
Higher rate tax payers are even bigger winners particularly if they can plan a couple of years of nil or low rate tax when it is time to get the money out.
In reality what you thought was a pension plan has just become a very efficient savings plan particularly if you are close to, or over, age 50. This beats any ISA hands down.
Interested enough to want to learn more? Just pop your details in the box on the right and add “female pensions” to book your free consultation. It will only take a few minutes to discover whether you are one of the “winners”.
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Your lifestyle in retirement is what is at stake. Please, please take this seriously and talk to me or your current adviser.
IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
