Creating financial security for later life
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Saving for retirement
Saving for retirement is one of the most important financial commitments you can make. Even if you’re not yet sure what you’d like to do in later life, with careful planning you’ll give yourself more options. And remember, your pension contributions are topped up by the government at the highest rate of income tax that you pay – so up to 45% contribution from the government to your pension.
With financial freedom you’ll be able to do what you want when you’ve retired and pass on money to your loved ones, while ensuring your plans are as tax-efficient as possible.
Take control of your pension
The sooner you start planning for retirement, the better.
As with any investment, your pension will fluctuate in value but it’s important to remain focused on your long-term goals. You may choose to invest in a higher-risk strategy in your 20s, 30s and 40s, then adjust to a lower level of risk as you approach retirement. Typically, the more investment risk you take, the higher the potential returns over the long term.
Taking control of your pension will help you secure financial stability for you and your family well into the future. If you’ve accumulated multiple pension plans over the years, if we beleive it is the right thing for you we’ll help you consolidate them or guide you through the process of modernising older plans that don’t offer all the benefits of today’s schemes. You can also combine your pension with other savings, such as ISAs, and assets, such as property, to maximise the amount of money you’ll have when you retire.
Maximise your pension contributions
It’s a good idea to put as much into your pension pot as you can. All the contributions you make will be topped up by the government, which is known as tax relief. For example, if a basic-rate taxpayer pays £1000 into their pension the government adds £200, effectively costing you £800. Your contributions will also be topped up by your employer if you have a workplace pension, so it’s worth putting in extra money if you can afford to.
It’s important to remember that there’s a maximum annual allowance you can put into your pension, which reduces if you’ve already starting drawing money from it or your income is above a certain level. An Adviser from The Openwork Partnership can provide guidance on how to make the most of your pension contributions and allowances.
Take control of your pension
As with any investment, your pension will fluctuate in value but it’s important to remain focused on your long-term goals. You may choose to invest in a higher-risk strategy in your 20s, 30s and 40s, then adjust to a lower level of risk as you approach retirement. Typically, the more investment risk you take, the higher the potential returns over the long term.
Taking control of your pension will help you secure financial stability for you and your family well into the future. If you’ve accumulated multiple pension plans over the years, if we beleive it is the right thing for you we’ll help you consolidate them or guide you through the process of modernising older plans that don’t offer all the benefits of today’s schemes. You can also combine your pension with other savings, such as ISAs, and assets, such as property, to maximise the amount of money you’ll have when you retire.
It’s a good idea to put as much into your pension pot as you can. All the contributions you make will be topped up by the government, which is known as tax relief. For example, if a basic-rate taxpayer pays £1000 into their pension the government adds £200, effectively costing you £800. Your contributions will also be topped up by your employer if you have a workplace pension, so it’s worth putting in extra money if you can afford to.
It’s important to remember that there’s a maximum annual allowance you can put into your pension, which reduces if you’ve already starting drawing money from it or your income is above a certain level. An Adviser from The Openwork Partnership can provide guidance on how to make the most of your pension contributions and allowances.
Types of pension
The number of pensions on offer can seem overwhelming, but we’ll guide you through your options and help work out what’s best for your circumstances. Here are the main types:
Types of pension
You arrange the pension yourself and can make either lump sum or regular payments to a pension provider.
You arrange the pension yourself and have more freedom than with a traditional pension plan to choose and manage your own investments, or you can pick an investment manager to do it for you.
The pension you receive from the government when you reach state pension age.
Your employer sets up a pension scheme to provide its employees with retirement benefits. There are two types of workplace pension:
- Defined contribution. You and your employer build up a pot of money that you can use to provide an income in retirement. The amount you’ll receive depends on how much you put in, the fund’s investment performance and the choices you make when you retire.
- Defined benefit. The amount you receive after you’ve retired is based on how many years you’ve worked for your employer and your salary. You receive an income for life, which increases each year to reduce the impact of inflation.
Value
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.