Don’t miss out on great tax planning opportunities because of past bad pension experiences.
The 19th March 2018 was the fourth anniversary of the Budget which announced the unexpected and welcome introduction of the “pension freedoms” which have turned the pension world upside down and produced so many tax planning possibilities.
Unfortunately prior to that there were so many pension issues and scandals that many people were turned off pensions to the extent that they have not understood and grasped the opportunities now available.
For all practical purposes most modern pension plans have become nothing more than a tax efficient savings plan once you reach age 55 whilst maintaining the tax advantages of a traditional pension plan.
So what does this mean to you?
If you are over 50 you should certainly be looking at pension plans as a way of both saving and deferring tax and building a tax efficient investment plan. The user-friendly, low cost, online financial services platforms such as Hargreaves Lansdown supported by guidance services from providers such as The Investment and Retirement Coach have made this far more practical and cost efficient.
Not everyone can benefit but the following should certainly be taking the time to explore the possibilities provided they are aged over 50:
- Higher rate tax payers – if you expect to be a basic rate tax payer in retirement this is almost a no-brainer.
- Anyone considering an early retirement – if you expect to have a few years without earned income before your state pension kicks in this is certainly for you.
- Anyone with savings they can live off for a few years – it may sound scary to put 100% of your earnings into a pension plan but the results can be spectacular.
I can’t make you into an expert in such a short article but hopefully the examples above will encourage you to take notice.
As always, I confirm that I am not a regulated adviser and do not therefore provide personal advice. My service is for those who are coachable and are confident enough to make their own decisions using the online platforms once they have all the relevant information and guidance. If you would like to know more get in touch or give me, Richard, a ring on 07770 575122.
The Pension Freedoms finally introduced in April 2015 have dramatically changed the pension world. Please, please do not allow any previous bad experiences to prevent you from exploring the tax planning and investment opportunities which are now out there.
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