Compounding of returns for the long term
If you are an income seeker, frozen interest rates at historic lows mean real losses for many savers in bank and building society deposits which fail to match inflation.
Monthly Archives: July 2011
Protecting Wealth
Planning for the future is not to be taken lightly
We all want to protect our wealth and help ensure our families are provided for when we die. However, increasingly HM Revenue & Customs (HMRC) are challenging the valuations of properties given for Inheritance Tax (IHT) purposes, according to accountants UHY Hacker Young.
Funding your wealth
Choosing from different sectors
There are thousands of investment funds to choose from and they are divided into different types or sectors. You can buy funds that invest in shares, corporate bonds, gilts, commodities and property among other things; they will also typically have some form of geographical focus.
Inflationary Pressures
Counteracting the pensioner’s worst enemy
Inflation is a pensioner’s worst enemy. Over time, it will reduce the value of your income unless you take measures to counteract it. With retirement often stretching to twenty to thirty years, your income should keep pace with inflation.
A-Z of retirement planning
Understanding the jargon
Accrual Rate
The factor used to calculate benefits in a defined benefit scheme. For example, a scheme with an accrual rate of 1/60th will provide 1/60th of pensionable salary for each year of pensionable service.
Annuities
Taking greater responsibility for your financial future
On 9 December 2010, the Treasury published its draft Finance Act legislation which explained the way pension benefits would be taken in the future. Annuities themselves have not been changed; however, it is now possible to buy an annuity at any age after 55. An annuity will still be the option of choice for most retiring investors because, unlike drawdown, it provides a secure income for life. Annuities are to be used to secure the minimum income requirement of £20,000 to allow investors to use the rest of their pension to go into Flexible Drawdown.
Carry Forward rules
Increasing pension contributions by using unused annual allowances
From 6 April 2011 the annual allowance for pension contributions reduced from £255,000 to £50,000. While this restricts the levels of contributions you can make without attracting an Annual Allowance charge, on the plus side the Government has brought back the Carry Forward rules.
Self-Invested Personal Pensions
Taking more control over your pension fund investment decisions
If you would like to have more control over your own pension fund and be able to make investment decisions yourself with the option of professional help, a Self-Invested Personal Pension (SIPP) could be the retirement planning solution to discuss.
Alternative options for investors
Making retirement more flexible
The Treasury published its draft Finance Act legislation on 9 December 2010. The rules revolutionise the way pension benefits are taken and are designed to make retirement more flexible.
Flexible Drawdown
Removing the cap on the income you can take
After years of saving into your pension fund, you’ve now decided you want to retire and are overwhelmed by the retirement options available. We can work with you to choose the right strategy in order for you to enjoy your retirement years.