Following sweeping pension reforms in 2015, there is more scope than ever to arrange your finances the way you want them.
For example, you can now continue to work and take some of your pension benefits – and can even access your entire pension savings and draw up your own investment strategy.
That flexibility is great, but there is a lot to weigh up when considering whether to touch your pension. It may be in your best interests to stay in your defined benefit scheme - obtaining professional advice is therefore crucial.
Aberdein Considine’s independent financial advisers - who are authorised and regulated by the Financial Conduct Authority (FCA) - can guide you through the pension maze and help you tailor a plan to your circumstances.
Our advisers can help you with the following:
Following pension reforms in 2015, anyone aged 55 and over can take their entire pension savings out as a lump sum, paying no tax on the first 25% and the rest taxed as if it were a salary at their Income Tax rate.
Taking a 25% tax-free lump sum could be a good idea if you have debt to pay off, such as a mortgage, but it will reduce your retirement income.
It's important to seek professional advice before removing your pension from its 'tax-efficient wrapper'.
It’s important to ensure that you get the best out of the contributions you’ve made and keep track of your pension portfolio to make sure it remains appropriate to your personal circumstances.
Consolidating your existing pensions is one way of doing this. Pension consolidation involves moving, where appropriate, a number of pension plans – potentially from many different pension providers – into one single plan.
It’s vital that you review your existing pensions to assess whether they are still meeting your needs, considering various different aspects of the pension plan such as costs, performance, funds available and features.
If you would like to speak to one of our advisers about your pension options, click here.
A pension is a long-term investment. The fund value may fluctuate and can go down as well as up. You may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. This is for your general information and use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice.
I contacted Aberdein Considine on the advice of a friend and I found their approach to be much more personal – focused on my needs rather than limited to the products, services available from a specific bank.
A. McIntosh, personal financial planning client
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