Category: Pensions

Should you take a tax-free lump sum from your pension?

20.05.2020

Being able to take a tax-free lump sum out of your pension when you reach pension age certainly sounds appealing. It can help you kick-start retirement plans and fully enjoy the milestone, but is it always the right decision to make? Currently, you’re able to take a 25% lump sum from your private pension at retirement age without incurring Income Tax liability. This option is usually available once you’ve passed the age of 55 but is set to...

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Understanding your Final Salary Pension: What income will it provide?

13.03.2020

If you have a Final Salary pension, retirement planning can seem more straightforward. However, there are still important decisions that need to be made and it’s crucial that you understand the income it will provide. Whether retirement is just around the corner or some years away, reviewing your pension arrangements can provide confidence. First, what is a Final Salary pension? Final Salary pensions, also known as Defined Benefit pensions,...

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3 things to keep in mind when accessing your pension at 55

13.02.2020

For most people, their pension becomes accessible from the age of 55. If you’re nearing your 55th birthday, you might be tempted to make a withdrawal, whether as a one-off lump sum or regular income. However, using your pension as soon as you can, may have a greater effect on your retirement lifestyle than you anticipate. If turning 55 is still some way off, keep in mind that the pension age will rise to 57 in 2028. However, the same...

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How much do you expect your pension to grow by in the next five years?

22.11.2019

Research suggests that pension savers could be disappointed in investment returns after uncovering differing expectations between individuals and institutional investors. Understanding how much your pension is expected to grow by between now and when you want to access it is essential for planning your financial future. Schroders questioned both institutional investors and individual investors about their expectations over the next five years. It...

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6 things to avoid when accessing your pension

22.11.2019

Thousands of retirees access their pension every year. However, it can still involve making many challenging decisions. How should you access your savings? What is a sustainable annual income? What can you do to minimise tax? Understanding the pitfalls to avoid when you first access your pension can help you build a retirement income that suits you. Knowing your decisions have been carefully weighed up can help you enjoy the next...

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What is compound interest and how does it affect you?

22.10.2019

Einstein once reportedly referred to compound interest as the ‘eighth wonder of the world’, stating: “He who understands it, earns it, he who doesn’t, pays it”. So, just what is compound interest and when do you benefit from it? Whilst financial jargon can often seem complex, compound interest is actually simple and easy to take advantage of. The term refers to the principle that when you save money you can earn interest on not only your...

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7 things to review when looking at your pension

22.10.2019

Research suggests thousands could be missing out on investment returns in their pension because they haven’t updated their retirement age. Remaining engaged with your pension can help you create a retirement income that meets expectations. So, what should you review when looking at your pension? 1. What fund are you invested in? Typically, a Defined Contribution pension will offer several different fund options for you to choose from. When you...

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Can you afford to retire before State Pension age?

10.09.2019

When do you want to retire? Are you dreaming of giving up work before you start collecting your State Pension? With news that the State Pension age is rising and suggestions the government needs to raise it quicker, it’s a question more workers may be thinking about. With 15th September marking Pension Awareness Day, now is the perfect time to consider whether your pension contributions are aligned with your plans. The sooner you start planning...

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How to make sure your pension lasts a lifetime

06.06.2019

Thousands of retirees are shunning Annuities when they reach retirement age. Instead, they’re taking advantage of the opportunity to access their pension savings flexibly. It can be a fantastic way to match your income and lifestyle, but figures suggest many are withdrawing unsustainable amounts. There are many benefits to taking your pension flexibly. However, you need to keep in mind that you’ll be in control of when withdrawals are made and...

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Defined Benefit pensions: Is it appropriate to transfer out?

06.06.2019

Please note: Transferring out of a Final Salary scheme is unlikely to be in the best interests of most people. Do you have a Defined Benefit (DB) pension? If you’ve seen the sums you could receive by transferring out, you might just be tempted. However, it’s not the right choice for everyone and it’s crucial to consider the long-term impact. Receiving a lump sum that’s probably many times the annual value of your pension might seem like...

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