With news that the government is changing how state pensions work, there’s been plenty of speculation about the effect it will have on people in the future and some say it could mean those born after 1970 may end up with less. Taking into account the new system coming into place, it makes even more sense for people to look at their pension arrangements.
At the Whitehall Partnership, we understand that, as people get older, they start to think more about their financial security. Most people have had money worries at some point in their life, but keeping up contributions to a private pension plan is, especially now, one of the best ways to provide yourself with an income when you retire. Obviously, there are numerous ways to build a good retirement fund in your old age, but it is imperative to work out all your options with advice from an independent financial adviser.
Even when taking into account the new pension structure, there’s no investment opportunity out there that draws tax relief from the government in the same way pensions do. Although there’s obvious tax benefits from pensions, investors should take care to be fully aware of both the ‘tax breaks’ and ‘tax traps’.
The Department of Work and Pensions estimate that by 2050, there will be just two working people for every person aged over 65, because life expectancy is increasing. The retired population are searching for new and better ways to retire and as the population ages; income drawdown is quickly becoming the chosen way of taking retirement benefits for people who have a larger pension fund. The mounting popularity of capped and flexible drawdown plans means receiving the correct advice is vital for avoiding financial harm, especially running out of money.
The Very Best Pension Investments Service
At The Whitehall Partnership, investors get a flexible private pension plan that allows them to establish the very best ways of taking retirement benefits, which considers numerous options including phased retirement, income drawdown and annuities. To find out more about pension investments, feel free to contact us on +44 (845) 43 49 250 now.