Planning for retirement is one of the most important decisions you will make.  We all hope for a comfortable and financially secure retirement. It may seem fair to expect a financially sound retirement following a successful career. But the truth is without good financial planning, hard work alone does not bring a secure future.  Consequently, this is why private pensions should feature in your financial plans.

A private pension is a great way of saving for your retirement.  As the money you put in is invested and builds up so you can access this later in life.  Notably, it is the primary method by which many people support themselves in their later years.  Accordingly, to a large extent, this determines the quality of life you will have. 

Tax Free Lump Sum

Normally you are able to take money from your pension pot, usually from the age of 55. Moreover, the first 25% will normally be tax-free with the remainder being taxed as income. The normal minimum pension age to access your private pension will move to the age of 57 from 6th April 2028.

Furthermore, there are different pension options that can best suit your own individual circumstances. Understanding your options gives you the confidence to make informed decisions. That is why it is good to seek independent financial advice.

What is Pensions Tax Relief?

A further benefit is that you get tax relief on your pension contributions from the government.  A basic taxpayer will receive 20% pension tax relief and a higher-rate taxpayer can claim 40%.  For additional rate taxpayers, this will be 45%. Tax and reliefs will depend on your individual circumstances and tax rules can also change.

Why an Independent Financial Adviser?

As we are independent, we offer advice on the full range of products. As a result, we can offer those best suited to your individual needs as we are not restricted to a particular provider. You may find the number of options and pension schemes available to you, together with pension tax rules, overwhelming. At Iceni Financial Advisers, we can help you through the maze of information. Furthermore, we can make personal recommendations suitable for your own individual circumstances. Call us today on 01603 957599 for your free initial consultation.

Just like any other investment, the value of your pot could go down as well as up so you might not get back what you put in. You would need to keep track of how your pension is performing and make changes to suit you.