Pensions & Retirement Planning

Pensioners relying purely on the state pension are currently living in an impoverished state, and the situation is not likely to improve. We recommend an early start to retirement planning, and regular reviews to ensure you are investing in the right way.

Saving via Pensions

This is the most tax efficient way to save, but the least flexible. You benefit from tax relief on your contributions and almost tax free growth, but can usually access only 25% of your fund as a tax free lump sum on retirement. Your pension will be subject to income tax, and benefits cannot be taken before age 55. Savings may be invested in a variety of assets.

Saving via ISAS and other savings vehicles

ISAS are also tax efficient, but your contributions do not benefit from tax relief. They are however very flexible. All assets are accessible at all times, and a tax free lump sum or income can be taken at anytime. Savings can be in cash or may be invested in a variety of assets. Other savings vehicles may be used which also have a high degree of flexibility, but are less tax efficient than pensions or ISAS.

Buy To Let Property

Property may also be used as a long term investment. The main advantage is that rental income should pay much of the mortgage costs, and mortgage interest is allowable against tax. Like any investment, there are risks, and there may be Capital Gains Tax to pay on sale. The option of keeping the property after you retire could be attractive in terms of the rental income it would continue to produce.

The value of unbiased Independent Financial Advice

By reviewing the whole market, we can help you plan for retirement over the longer term. We ensure that investments are compatible with your attitude to risk, and tax breaks are maximised. Regular reviews are recommended to ensure, as far as possible, that returns match expectations. Failing to do that is one of the principal reasons why some pensions fall short of expectations.

Retiring soon ?

An independent appraisal of all pensions and savings is recommended prior to retirement. This will ensure the highest possible income is obtained, and the effects of taxation are minimised.

The Open Market Option

You should not simply take your pension from your existing provider. We can undertake a full review of the annuity market to ensure the best rates are obtained. In many cases, an enhanced annuity can be obtained due to health, weight, occupation, or smoking status etc. There are also a number of other options to be considered in setting up your annuity, such as a spouses pension, a value protected annuity, an escalating annuity etc, to name but a few.

Specialist Advice

If you do not want a conventional guaranteed lifetime annuity, other options are available, such as an unsecured pension, phased retirement, or a temporary annuity. These options are more flexible, but carry more risk.
They are usually considered for larger pension pots. Specialist retirement advice is available through the team at Sesame Gateway, if required.

Consumer Guides

Further information is available to download in our free consumer guides section.

Free initial consultation

Please call us for a free initial consultation. If we arrange a product for you, we can either be paid by fee or commission from the provider. Terms are available on request.

 

Your property may be repossessed if you do not keep up repayments on your mortgage.

For mortgages we can be paid a fee, usually £500 or by commission.

 

The FSA does not regulate some forms of Buy to let mortgages.