Category

Manchester

Making the most of your pension

Making the Most of your Pensions

By | Manchester | No Comments

Keeping track of your pensions performance and regularly reviewing your pension plan will help to ensure you are making the most of the opportunities available to you. Reviewing your pensions can help you identify any shortfalls that appear in your pension plan so clear action can be taken to overcome them.

Even if your pension savings are on track and performing well, it is still good practice to review your pension plan, as there could be steps you could be taking to build your pension pot further and achieve the income you want for retirement.

When reviewing your pensions performance and your pension plan it is advisable to seek pension advice from an independent financial adviser. Working with a local pension adviser will ensure you have the most effective pension planning strategy in place and can help you achieve your desired retirement income.

If you are living in Manchester and are looking for independent pension advice, the financial advisers we recommend are experienced in pension planning and regularly work with their clients in Manchester to provide independent pension advice, from planning to reviewing.

Our recommended financial advisers in Manchester will work with you to determine which pension plan is best suited to your circumstances and can provide pension advice to overcome shortfalls in your pension savings and help you make the most of opportunities available to you.

Tracking your Pensions Performance

It is good practice to check the progress of your retirement and pension savings at regular intervals, checking the progress of your pensions performance can help you identify any shortfalls in your pension plan and help you stay on track with your retirement goals. The earlier you identify a shortfall in your pension plan, the longer you will have to overcome it and ensure you have the income you want in later life.

Working with an independent financial adviser that offers pension advice, such as our recommended advisers in Manchester will ensure you are making informed decisions about your pension plan and could open opportunities that may otherwise not be available to you. Our advisers in Manchester cover all aspects of pension advice, including tracking pension performance and implementing new strategies to overcome shortfalls.

Making your Pensions Work Harder

If after reviewing your pensions you find they are performing well and are on target with your retirement goals, there could be ways you could make your pensions work harder to ensure you are making the most of your pensions and have a financially secure retirement. There are a range of ways you can make the most of your pensions, including increasing your savings and claiming available tax relief.

Increase your Pension Savings

Your financial situation from when you implemented your pension plan to when you review your pension plan is likely to have changed, which is why it is imperative to review your pension plan when there are changes in your circumstances, such as downsizing your home or paying off your mortgage.

Circumstances such as career progression and reduction in financial responsibilities, could mean that you are able to save more towards your retirement. Putting surplus income into a pension could be a tax efficient way of investing, not only would your additional contributions be topped up by the taxman, but if it is a workplace pension your employer may increase their contributions, depending on the rules of your scheme.

While the most important factor to consider is having enough income to have the retirement you want, making additional savings now could help you safeguard yourself against unexpected events in retirement and give you the financial freedom to achieve your retirement goals and provide financial help to your children and grandchildren.

Claim your Tax Relief

Higher rate taxpayers making pension contributions to either a workplace or personal pension will automatically receive basic rate tax relief on their contributions. However, they could be eligible for higher rate tax relief, but this would need to be claimed through your self-assessment tax return. Claiming additional tax could allow you to benefit from greater pension contributions and give your pension pot a boost.

If you are unsure if you are claiming all of your available tax relief on your pension contributions, it is advisable to seek the advice of an independent financial adviser.

At Pensionadvice.org we can help you find a FCA registered financial adviser for independent pension advice in Manchester. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Should you combine your pension pots?

Should you Consider Combining your Pension Pots?

By | Manchester | No Comments

If you have two or more pension pots you may be considering whether you would benefit from combining them into one pot. Combining your pension pots may make your pension easier to manage and track performance and in some instances you could get a better deal.

Many people are likely to have built up two or more pension pots from making contributions into workplace pension schemes at jobs they have had throughout their careers. While it is possible to have several smaller pots, it could be advantageous to combine your smaller pots into one big pot.

Before making any changes, it is imperative to seek independent pension advice to ensure you are making an informed decision that benefits your pension planning strategy. If you are looking for independent pension advice in Manchester, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

Why Consider Combining your Pension Pots?

Making the most of your pensions now by combining them could have a significant impact on your retirement income and future financial security. While it may not be beneficial for everyone depending on the type of pension scheme they have, getting it right could mean a higher retirement income and the possibility of early retirement.

Making the decision to combine your pension pots is not an easy one, which is why it is advisable to seek independent pension advice prior to making any changes. Our recommended advisers in Manchester can provide pension advice to help you understand how combining your pension pots could affect your retirement income.

Combining your pension pots is achieved by transferring your pots into a single scheme, this can be a new scheme or one of your existing pots. It is important to understand any charges that may be incurred by your pension scheme providers when you transfer your pots.

There are many different options regarding defined benefit pensions and defined contributions pensions and how you can combine your pension pots, so it is advisable to seek independent pension advice to ensure you understand your options and how the will affect you.

If you have built up more than two pension pots and are considering whether combining them into one pension pot could be beneficial to you, here are a few questions you may want to consider asking your financial adviser:

How much will it cost to combine my pension pots?

  • Do my pension pots have to be of a certain value before I can combine them?
  • What are the advantages and disadvantages of combining my pension pots?
  • What are the advantages and disadvantages of keeping my pension pots separate?
  • How will combining my pension pots effect my pension plan?

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients in Manchester to provide independent pension advice. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and can provide advice to overcome changes in your circumstances.

At PensionAdvice.org we can help you find a FCA registered financial adviser for pension advice in Manchester. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

A Guide to Ill Health Retirement

By | Manchester | No Comments

If you can no longer work due to ill health you may be able to take your pension benefits early, this is known as taking an ill health pension. Depending on the rules of your pension scheme, this can apply to those under the age of 55.

Each pension scheme will have its own rules on what ill health or sickness means, but typically you will be considered for an ill health pension if you are unable to carry out your normal job due to physical or mental illness. In the instance that you are terminally ill and have less than a year to live, you may be able to take the whole of your pension pot as a lump sum and special tax treatment may apply.

Usually, when you reach pension age you can take 25% of your pension pot as a tax free lump sum and the remaining 75% would be taxable. However, if you are terminally ill you may be able to take all of your pension pot as a tax free lump sum, if all of the following apply to you:

  • You are expected to live for less than a year due to ill health
  • You’re under 75 years of age
  • Your pension pot does not exceed the lifetime allowance amount of £1 million

The rules on special tax treatments will depend on the rules of your scheme, it is advisable to seek independent pension advice to clarify what your entitlements are and ensure you are taking the best course of action if you are considering taking an ill health pension.

If you are looking for independent pension advice in Manchester, we can help you find the right pension adviser to help you with all aspects of ill health pensions to ensure you have the most effective and efficient strategies in place.

Taking Ill Health Retirement

If you meet the criteria of your scheme for taking ill health retirement you may be able to take your pension benefits early. As you will be taking your pension benefits early, it is likely your pension pot will be less than expected if you had continued to work until retirement age, but if special tax treatments apply to your circumstances this could help reduce the effect on your pension amount.

Taking ill health retirement will be unavoidable and unplanned, while many will plan for their retirement not all will consider how ill health could affect their retirement or pension. Working with an independent financial adviser can help you plan for the unexpected before it is too late and they will be able to advise on the best strategies for protecting you and your family should ill health affect your circumstances.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients in Manchester to provide independent pension advice. Our financial advisers will work with you to determine how ill health retirement will affect your pension and advise on the best course of action.

At Pensionadvice.org we can help you find a FCA registered financial adviser for independent pension advice in Manchester. The financial advisers we recommend offer bespoke pension advice in Manchester that is tailored to your unique personal circumstances.

Will Early Retirement Affect your Pension Pot?

By | Manchester | No Comments

Depending on the rules of your pension scheme it may be possible to take your benefits from your pension early. How this will affect your pension pot will depend on whether your pension is a defined contribution scheme or a defined benefit scheme.

One of the main ways that your pension may be affected is that your benefits could be reduced if taken early as it is likely your pension will be paid to you for a longer period of time and contributions will stop if you are no longer working.

While it may be necessary for you to retire early due to a change in your circumstances such as ill health, it is imperative you seek independent financial advice before making any changes to your pension plan to be sure you understand how it will affect your pension and your retirement income. A financial adviser will be able to work with you to ensure you are taking the best course of action.

If you are looking for independent pension advice in Manchester, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

Early Retirement and Defined Contribution Pension Schemes

If you are a member of a defined contribution pension scheme you will likely have the option to open your pension pot from the age of 55. In some cases, schemes are set up for special industries where early retirement is likely, that allow members to access their pension pots before the age of 55. Contacting your scheme provider or seeking an advice from an independent pension adviser will help you determine the rules on early retirement that apply to your pension scheme.

While early retirement may not always be avoidable, there are some disadvantages to opening your pension pot early, these include:

  • Your pension pot will be smaller as you will have had less time to pay into it and it will have had less time to grow
  • Your retirement income will be less as it will need to be paid for longer
  • Depending on the rules of your scheme there may be early exit fees
  • If early retirement is taken during a fall in the financial market, your pension investment may not have performed as well and may not have had time to recover from market instability

Early Retirement and Defined Benefit Pension Schemes

As with defined contribution schemes, your defined benefit pension will likely permit you to take your benefits from the age of 55 and in some cases earlier than 55, this will depend on the rules of your scheme.

Early retirement from a defined benefit pension scheme could mean that your pension income is reduced as it will have to be paid for longer and you will not have had as much time to build your pension pot. Also, your defined benefit will likely be reduced as your time as a member of the scheme will be less if you retire early and therefore your accrual rate which is used to determine your benefit will be affected.

Another important to factor to consider is your state pension, you will not be able to draw your state pension until you reach state pension age. The age at which you can draw your state pension depends on when you were born. While your state pension should not be relied upon, it can provide a top up to your personal pension plan.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients in Manchester to provide independent pension advice. Our financial advisers will work with you to determine how early retirement will affect your pension pot and advise on the best course of action.

At Pensionadvice.org we can help you find a FCA registered financial adviser for independent pension advice in Manchester. The financial advisers we recommend offer bespoke pension advice in Manchester that is tailored to your unique personal circumstances.