Investment decisions and objectives will change over time for a variety of reasons, but many people may feel that limited knowledge and/or time holds them back. Therefore, it's a good idea to build a good relationship with a financial adviser and investment manager who can tailor your pension and other investments specifically to your own individual needs.
Saving for retirement - 20s, 30s, 40s and beyond
Retirement may seem far into the future and having the discipline to commit to regular investments is probably the hardest part of making financial provisions for retirement, as it can be tempting to use the money for other purposes.
ISAs are often used as an alternative in the earlier stages of planning as an additional form of long-term investments to support pensions. While ISAs may not be as tax efficient as SIPPs, they often appeal as they offer instant access to the capital without the need to consider the tax implications of withdrawals.
Pension contributions provide a tax efficient manner to save for retirement. Seeking advice from professionals such as a financial adviser or your accountant is important when considering pension contributions to help ensure that you do not exceed your available allowances and maximise any reliefs for tax efficiency.
Self-Invested Personal Pensions (SIPPs), once considered a niche market for ultra-high-net-worth clients, have become increasingly popular. There are a variety of SIPP products with lower-cost options now available. In addition to the tax relief on contributions, capital gains exemption and inheritance tax benefits (until legislation changes on 05/04/2027) offered by all pension arrangements, SIPPs offer three main advantages over the older style traditional pension contracts: control; flexibility; and transparency.
Although we do not currently offer a pension contract, our financial planning team can assist you with sourcing an appropriate provider for your pensions which may also offer access to our investment services. Alternatively, you can source your own pension provider who can offer access to our investment services.
Approaching retirement
At this stage of life, the investment timeframe is shortening. This may prompt decisions about how you will generate the income you desire in retirement and how your investments are allocated in terms of assets, such as equities and bonds. As you near retirement, you may consider greater bias to income producing assets rather than capital growth.
Retirement
When you retire, it is likely that you will need to access your pensions and/or investments to generate income. Our financial planning team can guide you through your options and review the sustainability of your withdrawals throughout retirement. Your investment portfolio can also be structured to meet your needs, which could be generating regular income, a growth focus to combat the effects of inflation or a combination of the two.
To discuss your retirement planning please call 0344 259 0001 or contact your local office.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available
Pension savings are at risk of being eroded by inflation.
Pension income could also be affected by interest rates at the time benefits are taken.
The tax treatment of pensions in general and tax implications of pension withdrawals will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future.
When investing, your capital may be at risk.