Are you making sufficient contributions to your pension? We all know that when we retire we will still need an income, and if we would like to enjoy a similar standard of living when we reach retirement age, we’ll need to plan ahead.
But with a plethora of pension companies, who exactly should you turn to when investing your hard earned money, so that when you retire you can enjoy the winter period of your life?
Most people turn to an independent financial advisor to assist when planning for the future. Unless you work within the pensions industry, it’s difficult to understand exactly what happens to your money so that it’s there for you when you retire.
Find a best-buy savings account
Surprisingly, not all independent financial advisors have the right knowledge and breadth of expertise to give the right financial advice. With such a wide variety of needs, IFA’s can’t be experts at everything.
You work hard all your life to be able to afford an enjoyable lifestyle, which you want to continue throughout your retirement. So when retirement comes you need to be confident that your pension will give you the income you need to enjoy the remainder of your life and enable you to achieve your ambitions. It is therefore crucial that you find the best retirement income deal that your pension fund will buy.
Boosting your retirement income
There are a number of ways that you can boost your retirement income.
Employees wishing to increase their pension investments can take out an Additional Voluntary Contribution (AVC) plan. Members of OPS's can make extra contributions to their company pensions.
AVCs are structured like personal pensions in that they are money purchase schemes and can either be invested with the company pension provider (where they are known as 'in-scheme AVCs') or with a different pension company (Free Standing AVCs - FSAVCs)
These have become less relevant since the pension changes. New pension rules mean that you can save up to a lifetime allowance, currently £1.5 million into your pensions. Any savings above this limit will be taxed at 25 per cent if you take it as pension and 55 per cent if you take it as cash.
Date: 21st, November, 2007
ADVICE TO READERS
While this website is checked for accuracy, we are not liable for any incorrect information included. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions.
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