15 Feb 2017
All components of wealth increased across the country, although pension wealth continues to be the largest component of private household wealth in Scotland, accounting for 48%
However, the distribution of household wealth in Scotland remained highly unequal.
The wealthiest 10% of households owned 43% of all private wealth in Scotland. The least wealthy 50% owned just 9%.
The wealthiest 1% alone owned more wealth than the bottom 5% of households.
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 of, such as a mortgage, but it will reduce your retirement income.
However, 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 pensions’ 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.
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.