Pensions often play a key part in long term financial planning and many individuals accrue substantial pension funds during their lifetime. It is therefore a little surprising that what may represent someone's single most valuable asset is not reviewed as frequently as their other investments.

Pension arrangements themselves are not as simple as most would like, and this can prove problematic when planning a clear retirement strategy. Private investors, particularly those with larger funds, often have an array of options available to them, both whilst accumulating assets and then once they have started to draw their pension benefits.

Pension legislation changes regularly and it is therefore essential to keep on top of these developments and make appropriate changes when required.

Depending on the size of your pension fund there may be various options open to you at retirement which allow a lot of flexibility in how you take your benefits.

Legislative changes on 6th April 2006 introduced a single so-called "simplified" set of tax rules to apply to all pensions. Many argue that these changes have, in fact, caused further confusion and uncertainty, but it is clear that both opportunities and threats have been created.

For example, for those with pension funds exceeding the lifetime allowance there is potentially tax payable at up to 55% on any excess amount.

More positively, the annual amount of pension savings upon which an individual can claim income tax relief has increased significantly. This may be of particular benefit for high earners, and those that receive larger bonuses who want to significantly increase their pension savings over a short period.

If you read the financial press, leaving your occupational pension with a previous employer may or may not be in your best interest, depending on the status of the scheme. In our opinion it is good financial planning to review this area on a regular basis to ensure that your pension in retirement meets your expectations.

Planning for Retirement

Planning for retirement can be a daunting prospect but with our help you can aim towards to a comfortable and financially secure retirement.

The first step would be a financial review of your situation in order to establish whether, for example, your pension and other assets will provide you with enough income to sustain a comfortable retirement.

You may even need to think about making provisions for nursing home care, which may occur as a result of old age.

You will need to ensure that you have a will and that it is updated regularly as situations change.

What you need to know about Pension Plans

A pension scheme that doesn't deliver has probably not been fed enough money during its lifetime. Contributing as much as possible, as early as possible, is the best way to approach pension planning.

Tax Advantages

Money contributed to a Personal Pension is (subject to annual limits) net of basic rate tax and, will qualify for a rebate of higher rate tax if applicable.

If you are a higher rate taxpayer, this means that the government is contributing an additional 40% to your Personal Pension fund. Money contributed to a Personal Pension is (subject to annual limits) net of basic rate tax and, will qualify for a rebate of higher rate tax if applicable. Company Funded Pension contributions are normally allowable as a business expense and can thus reduce a company tax bill.

Old Pension Plan? High Charges?

If you have already started saving towards a pension fund it is well worth assessing the charges being made by your provider.

You may have:
• An old employer's scheme
• A number of plans with different charging structures
• An old plan with no contributions being paid

All of these need to be reviewed to make sure you are getting the best for your money.

Using specialist systems we can assess your plan against the current market place to ensure that you are getting best value for money - which should mean a better income in retirement.

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