We can assist you in planning for your eventual retirement.
You work all your life so that you can enjoy your retirement without any tension and worries. Everyone wants to have a safe and secure life both financially and emotionally after their retirement, for which they work extensively when young.
But you cannot guarantee a financially secure life by just working hard in your youth, you will also have to do proper planning for your retirement so that you can get the comfort you deserve. To achieve this, you need to do the best retirement planning in guidance with the best consultants, and Incisive Wealth is committed to help you.
What is a pension scheme?
In simple terms, a pension scheme is just a type of savings plan to help you save money for later life. It also has favourable tax treatment compared to other forms of savings.
A long term savings plan
It makes sense to put some money away for when you’re older and that’s what pension schemes help you do. You save a little of your income regularly during your working life so you can have an income in later life, when you want to work less or retire.
There are several types of pension schemes. Some may be run by your employer, others you can set up by yourself. And saving into one scheme doesn’t mean you can’t save into another or use other tax-efficient savings plans like ISAs.
When the time comes for you to start enjoying your pension, there will be several options available to you. These may include being able to take a tax-free cash sum and the added security of being able to receive a regular income.
How do I know the amount of pension I will get?
It depends. If you have a defined benefit pension scheme, you will receive a specified level of income that is worked out according to factors such as your final pensionable salary and years of pensionable service.
If you have a defined contribution pension scheme, you build up your own pot of money. The value of this pot can go up or down but over the long term, pension savings usually grow and you can benefit from a number of tax advantages. When you come to retire the amount of income you receive will depend on how much it costs to buy a pension at that time.
Is it too late for me to start saving into a pension?
No matter how old you are, there is always a value in saving into a pension scheme, particularly if your employer is also willing to contribute. Also, it’s a tax-efficient way of saving money and you may be able to take some or all you save as a cash lump sum.