Pensions
Welcome to the Pensions area of our site. In this area you will find information about Pensions and associated topics. If you can't find the answer to your specific query, please contact us with your question or to arrange an appointmemt to discuss your personal circumstances.
- Types of Pension: With so many different types on offer how do I choose between an Occupational Pension, a Personal Pension or a stakeholder?
- Pensions and divorce: 'What happens to my Pension if I get divorced?' Go to this area for simplified explanations.
- FAQs - Frequently Asked Questions: Ever wondered how much you can contribute to your Pension? Click here for answers and help.
- Glossary:Turning professional jargon into plain English.
Pensions - an alternative approach
You don't need to be a rocket scientist to understand that one day you will need some money to live on when you have stopped working. Yes, we know you are going to win the lottery, inherit millions or die having fun long before you get to retirement, but just suppose for one moment that none of those things happen. You've had a great life, had the holidays and the nice furniture, but you have just left your job for the last time and now every day of the week is a holiday. And the government is going to give you about a £100 a week to enjoy it....
Perhaps it might be an idea to hedge your bets and start doing something about it now?
Negative publicity about pensions has deterred many people from doing anything at all. It seems the amount you need to put into a pension to achieve a reasonable return is so great that many people don't bother to do anything at all. That's a bit like saying "Well I can't afford a Ferrari, so I won't have any car".
Edison Ford is quite different to most IFAs in that we believe property is one of the best ways to increase your wealth and give you the kind of retirement income you would expect. Generally speaking, an investment property paid for by retirement will give you a far higher income than any pension fund the average person could hope to achieve in a lifetime. This is a sweeping statement and many IFAs will challenge it, telling you that you shouldn't have all your eggs in one basket, that property can go down, it will be a lot of hassle, there aren't any tax breaks etc.
We accept all those arguments but as everyone at Edison Ford believes in property, invests in it themselves and we will only promote strategies we believe in, we cannot help but recommend people down the property route. That is not say it is for everyone, (although we have a belief that anyone can invest if they really, really, want to, but that's another story....) so we also advise clients on more traditional methods of retirement planning.
Nevertheless, by far the majority of our time is spent helping people like you establish their own property portfolios. So contact us to find out how we can help you do the same. Or have a look at our property related areas such as www.efip.co.uk.
The latest Pension rules
From 6th April 2006 (known as ‘A day’), new legislation was introduced to provide one set of rules for all pensions.
The changes included things like:
· When you will be able to take your pension benefits
· The amount of tax free cash you can draw at retirement. It could be more or less, depending on what type of pension you had already · How much you can invest in pensions in the future. · What you can invest in · If you have a ‘significant’ pension fund, you may need to 'protect' it to avoid significant tax charges in the future · If you have a ‘small’ pension fund close to retirement, you may be able to take all the benefits in cash · More restrictive allowances for anyone wishing to invest in commercial property · Improvements to life assurance provided within a pension arrangement
If you are not sure whether your existing arrangements have been affected contact us so we can advise you on what, if anything, you need to do. Spending 5 minutes doing this now will help us to help you in one or more of the following ways: · Save you tax now and in the future · Create more money in your pension fund and therefore improve your standard of living in retirement Annuities themselves are becoming more flexible so someone can benefit from the security they provide but now have flexibility as well. If you prefer, you can take an income directly from the investment fund. After 75, income can be provided by the alternatively secured income (ASI) route as well. Some people may even want some or all of the income to be passed on to their next generation, simply releasing the tax-free cash for themselves. Old pension policies can mean high charges, inflexibility, poor investment options, and inferior performance. You should speak to us immediately. We will either put your mind at rest or improve your benefits at retirement and therefore your future standard of living. What you need to do
· Protect some of the significant benefits you may have with your existing policies which may be lost if no action is taken
One of the major concerns about pensions has been the inflexibility at retirement when you come to take the benefits. Prior to 'A' day, anyone in their own private arrangement had to buy an annuity by age 75 at the latest and the current low level of
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The advice and/or guidance contained within this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Written quotations available on request.
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