Changes to the way pension funds are taxed have prompted many people to think about retiring much earlier than they had previously planned.
Chancellor George Osborne announced last year that the maximum tax-free amount that can be held in a pension fund is to be capped at £1.25 million from 2014, and that the limit on annual savings is to be reduced from £50,000 to £40,000.
This new lifetime cap will affect about 340,000 people, including up to five per cent of those working in the public sector, while the reduction in allowable annual savings will affect an estimated 160,000 savers.
It means that those whose pension pots get to the limit will be left with a lot less income in retirement while the Treasury pockets an additional £2.15 billion.
Get Help from an Independent Financial Adviser
If you’re one of those people now considering an early retirement in light of these changes then let the Whitehall Partnership, an experienced West Midlands financial advisor help you. We provide expert advice in a number of ways while striving to manage your money with integrity.
With our Choices at Retirement service you’ll be in the best possible position for determining the most effective method of taking pension benefits, such as phased retirement, income drawdown and annuities.
We at the Whitehall Partnership offer the best advice on each option so that our clients understand all the benefits as well as any potential pitfalls. Our strategies have been designed to meet the needs individuals’ circumstances, attitudes and lifestyle, with optimal tax efficiency the main focus.
So if you want more information about our Choices at Retirement service, please call us on 0845 43 49 250 to arrange a cost-free first meeting and find out why we are a leading financial adviser now covering Coventry.
Our services are unique: no gimmicks, no sales jargon, no guesswork. Our approach is based on facts, evidence and science. We make no apologies for taking time to understand you and what you want for the future – and we will challenge your views if we think it helps you.
Our investment services are tailored to manage combined assets of at least £150,000 and we offer a broad range of investment services, including ones that provide an ideal entry point for most clients.