Maximising your pension fund
Despite the ever-changing pensions landscape, pension planning and saving for your retirement are still as vital as ever. Pensions remain highly efficient, offering tax relief at your marginal rate of income tax on your contributions.
Tapered Annual Allowance
Understanding the tapering of your annual allowance can be complex.
From 6 April 2020, tapering occurs where you have adjusted income in excess of £240,000 per annum. This means you will see your annual allowance reduced by £1 for each £2 this is exceeded, to a minimum of £4,000.
Carry Forward of unused reliefs
You may be able to contribute in excess of the current tax year's Annual Allowance of £40,000, or your tapered annual allowance, if applicable. If so, you’ll potentially receive tax relief at up to 45% using Carry Forward.
Carry Forward can work for you if you’ve contributed less than the Annual Allowance in the previous three tax years and were a member of a UK registered pension scheme during that time.
Lifetime Allowance
Frequent changes in Lifetime Allowance mean that advice is more important than ever. We will help optimise your retirement planning and ensure you’re taking full advantage of the latest Lifetime Allowance protection opportunities.
The value of an investment with St. James's Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances.
Planning your retirement
Helping you to plan for your retirement is a large part of our business. It’s one of the most important services we provide, and we will work tirelessly so that, when it comes to your retirement, everything is as it should be.
It’s never too soon to start planning your retirement. You might be thinking about making arrangements for a retirement in the not too distant future. You could be at the very start of your career and wanting to make sure you get off on a good footing. Whatever your time in life, we can help you focus on what’s most important to you and ensure you begin to take the right steps at the right time.
Working with a carefully selected panel of providers who’ll be on hand to work with you, ensuring everything is moving smoothly in the right direction.
We offer the following range of products:
- Self-Invested Pension Plans (SIPPs)
- Trustee schemes
- Retirement plans
- Drawdown plans
- Annuities
The value of an investment with St. James's Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested.
Nearing retirement
As you approach retirement, there are several options you can take and choices you will need to make.
We can help you make the right decisions.
You may use your pension fund to purchase an annuity from a suitable annuity provider. This can provide you with a secure income for life - no matter how long you live.
Alternatively, Flexi-access Drawdown allows you to take an income directly from your retirement fund, rather than buying an annuity. If you’re thinking about this option, you will need to take specialist advice. *
Defined Contribution (DC) Pensions
The Pension Freedom Reforms, implemented in April 2015, changed retirement planning significantly.
Individuals now have full access to Defined Contribution (DC) pensions from the age of 55, with unrestricted income available, subject to paying their marginal rate of Income Tax on any taxable withdrawals.
It is still possible to take up to 25% of the pension fund as tax-free cash.
DC pensions can now be passed to anyone after death, not just a dependant.
Income taken from a DC pension by beneficiaries will be tax-free, if death occurs before the age of 75 and at the beneficiary’s marginal rate, if death is later than this.
*The level of income from pension drawdown is not guaranteed. There is a very real chance that you may need to reduce your drawdown income in the future, in particular if the performance of your investments is lower than expected, or you live to a greater age than originally anticipated when choosing your initial income level.
The value of an investment with St. James's Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.