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RETIREMENT PLANNING

16th September 2018 | BY JAMES LUETCHFORD, GROUP BUSINESS DIRECTOR, SEVENTYSEVEN WEALTH MANAGEMENT

THREE YEARS ON FROM THE DAWN OF PENSION FREEDOMS IN THE UK, HOW MUCH DO YOU UNDERSTAND ABOUT YOUR PENSIONS AND HOW CONFIDENT ARE YOU THEY ARE IN THE BEST POSITION AND TO SEE YOU THROUGH RETIREMENT?

Pension freedoms introduced in April 2015 gave individuals the flexibility when it came to how and when they could draw an income, but freedom of choice is only one aspect and can complicate things further.

Information is out there to help individuals choose between several retirement plan options these include, Annuities, Flexi Access Drawdown and Uncrystallised Funds Pension Lump Sum (UFPLS) and many pension providers can now facilitate all of these, but what are the true impacts where income tax, annual allowances for future contributions and Inheritance Tax are concerned?

Many people are choosing to steer away from the security of an annuity in favour of taking a longer-term approach, but this also means that a change in management structure and investment strategy are vital.

At one end of the spectrum we can see that Lifetime allowance breaches have cost pension savers £110 million in a single year, up from £40 million in 2014/15*. While at the other end, a paper published by the Government Actuary’s Department (GAD)** has uncovered a potential hole in the public purse that could mean that the National Insurance Fund – from which State Pension payments are made – will run out in the early 2030s.

ARGUABLY, THE NEED FOR A HOLISTIC APPROACH TO YOUR PENSIONS AND RETIREMENT INCOME IS MORE IMPORTANT NOW THAN IT HAS EVER BEEN.

Stories of underperforming pension funds and the associated advice charges have resulted in more and more savers taking a ‘DIY’ approach where their retirement is concerned. However, do people have the relevant information and time to truly plan and manage what, for many, could be their largest single investment?

Our experience shows that many who have regularly saved throughout their working lives and who have substantial savings may still have gaps in their planning.

At SeventySeven Wealth Management, we help and advise our clients on all aspects of their pre- and in-retirement planning, assisting them in making the right choice for them personally and for their family’s futures.

SeventySeven Wealth Management is holding a number of seminars throughout Kent and East Sussex to give you a little more information on all aspects of family wealth management.

For more information about Retirement Planning, contact James Luetchford at james.luetchford@sjpp.co.uk.

The value of a pension with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances.

SeventySeven Wealth Management Ltd represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products.

*Freedom of Information request by Old Mutual Wealth, February 2018 rounded to nearest £10M from 2009 onwards.

**Government Actuaries Department paper published October 2017.


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