With the introduction of the pension freedoms rules, those aged over 55 now have far greater freedom of choice over how they use their pension pot to fund their retirement years.
How people can now access their retirement income is substantially different from previous generations. Pension freedoms have made it much easier for people to access their pension pots and as a result some may think they can do it themselves.
However, pension freedoms have put a greater onus on people to keep themselves informed of their options when it comes to accessing their pension money. However, little knowledge and understanding of the rules could mean you risk making decisions that are not best for you.
Your income objectives and attitude to investment risk.
The size of your pension pot and other savings.
Whether your circumstances are likely to change in the future.
Any pension or other savings your spouse or partner has, if relevant.
Tax relief and pensions freedom
Saving into a pension is one of the most tax efficient ways to save for your retirement. Not only do pensions enable you to grow your retirement savings largely free of tax, but they also provide tax relief on the contributions you make.
There are various pension allowances in place that you need to be aware of and understand how to make the most of them. These limit the amount of money you can contribute to a pension in a year, as well as the total amount of money you can build up in your pension accounts, while still enjoying the full tax benefits.
Start planning for your future, today
Retirement planning is a long-term commitment, so it’s essential to incorporate regular reviews of your arrangements to make sure that they remain on track and are meeting your needs. To find out more or to discuss how to maximise your retirement opportunities, please contact us.