With huge pension reforms in place and lots of opportunities for savers, we’re pleased to see National Pension Awareness Day is hitting the Press today.
We’re working with our clients to help them make the most of the changes and plan for the future they want. Here are some tips from Scottish Widows to celebrate Pension Awareness Day:
- Don’t rush decisions
First, remember to take your time. You have a lot to consider with a variety of savings options and new Pensions Freedoms. It’s important you don’t feel pressurised when deciding what to do, especially as some decisions can’t be changed. You could spend a long time retired – nearly one in five people currently in the UK will live to see their 100th birthday. Source: Age UK.
- Make use of the help available to you
To help you understand your choices there’s a lot of support available online and in person. Do your homework and read all the information offered. We can arrange a free and impartial initial consultation to help you weigh up the pros and cons of different decisions. Your Financial Adviser can also share their expert opinion and discuss the options available to you.
- Plan the retirement you want
If you don’t have a plan for the future, it’s important to focus on the sort of life you want first – and then find the retirement solutions to fit with it. You can fund your retirement with more than just your pension savings so consider all of your options and don’t forget to include the State Pension.
- Don’t pay more tax than you need to
Consider how you take money from your savings as it can affect how much tax you will have to pay. For example, spreading your income over different tax years could dramatically reduce your tax bill. And if you take some of your pension pot while you are still working, it is added onto your salary for tax purposes. Tax rules can change.
- Scams awareness
We know you may be concerned about who to trust and making the right decisions when it comes to retirement. Unless you know or recognise the brand name or company, be cautious if you are offered a free pension review. A great starting place is your existing provider, employer etc.
For further advice, please contact our Wealth Management team on 0191 285 0321.
Tait Walker Wealth Management is a trading style of Tait Walker Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority.
All statements concerning the tax treatment of products and their benefits are based upon our understanding of current tax law and HMRC practices both of which are subject to change in the future. Levels and bases of reliefs from taxation are also subject to change
Tax planning is not regulated by the Financial Conduct Authority.