pension planning

PENSION PLANNING

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For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers contributions by both the individual and their employer.

The unused allowance for a particular tax year may be carried forward for three years. It can also be added to the relief for the current year, but then lapses if unused. Hence the unused pension allowance for 2015/16 will lapse on 5 April 2019 if unused. Under the current rules the net after tax cost of saving £10,000 in a personal pension for a higher rate taxpayer is only £6,000. There are rumours that this generous relief may be reduced in future.

 

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Pension Planning

 

Karl Berry has worked in Financial Services since 1987 for large Insurance Companies and Major High Street Banks. He is now a Director for North West Financial Solutions and still actively advising on Corporate and Personal Financial Planning.

There are several ways of funding a happy retirement. Traditional private and workplace pension plans, building up a property portfolio, selling of a business or a mixture of all. Whichever method you choose, professional planning is essential. You must ensure you have a sufficient level of income to provide for your essential and non-essential expenses. Furthermore, you’re likely to want surplus funds for holidays and some luxuries in retirement. Our advisers will work with you, to help you plan and build up the funds you need to provide for you when you retire. The starting point is to discuss the retirement lifestyle you want, and the level of income you require to achieve your goals. Then, whilst taking account of your existing plans we can recommend an appropriate solution for you, which should be reviewed on a regularly to ensure it remains on target.

pension planning