We understand the importance of your retirement planning, which may be separate to any exit strategy you have planned with your business. We have a wealth of experience in dealing with Directors’ pensions. If you feel we can assist in this area, please click here.
The Pension Freedom rules herald one of the most important pension changes in nearly a century. At CWM our role is to understand these changes and provide independent advice to the families that we work for.
Please see our Blog for a summary of what pension savers need to know.
Reasons for Pension Freedom Rules
The changes removed the need for pension savers to apply their pension pots to purchasing annuities and to enable them instead to draw cash from their funds. The release of funds into consumers’ hands is likely to have the incidental advantage of stimulating economic activity.
The changes affect all personal pensions and other defined contribution (‘dc’) pension schemes, which now account for more than 90% of the pensions market.
The Pension Freedom rules removed the restrictions on withdrawing cash from pension savings and enabled anyone over the age of 55 to remove funds from their personal or ‘dc’ pension scheme, whenever they choose and for whatever purpose they wish, subject to income tax.
Possible future changes
Governments are forever tinkering with pension scheme tax and it has been suggested that contributions should qualify for only basic rate tax relief of (currently) 20%, rather than the higher rate permitted at present. It is possible that this might happen under a future Government.
It has also been suggested that the right to withdraw 25% of the value of pension savings in the form of tax-free cash might be abolished and the logic for this is stronger now that there is no longer an obligation to invest the remaining 75% in annuities.
Although they have been simplified, the pension rules are still complicated and the Government has indicated that it would like all pension savers to have the benefit of impartial advice. So make sure that the advice you receive is from an independent Chartered Financial Planner whose impartiality will not be affected by their relationship with any provider of financial products.
“Chartered Wealth Management have been providing me with advice re my pensions, savings, investments and tax planning for 2+ years and they have been extremely transparent in their advice, provided me with considered options and worked diligently with me to focus on a balanced approach to my investment and retirement plans….click here to read more.
“When we met David and the team at CWM it was like a breath of fresh air. It was immediately apparent that the level of advice and confidence in the people looking after our investments was something we had not experienced before. The diligence, information offered and the trust we gained were something we had not experienced from other financial dealings. We immediately signed up….click here to read more.