Pensions

How you provide for yourself financially in retirement is likely to consist of a combination of:

• State pension, or any other pension that may replace it.
• Pensions from your current or former employment or self-employment.
• Investment income generated from your savings and accumulated wealth.

Retirement planning is a decision that everyone should take responsibility for. Ask yourself at what age would you like to retire, what your financial responsibilities are likely to be and on what percentage of your current salary will you want to retire?

Clear Financial Solutions (through the association with Park Row Group) can help you answer these questions, work out if there is a shortfall in your requirements, the income you are likely to receive, and what you should consider in order to achieve your retirement plans.

Retirement planning is a necessity for everyone whose financial position depends mainly on earned rather than investment income.

Pensions have been subject to many changes over the years, and as such, many different legislative provisions apply, in slightly different circumstances, or to members joining pension schemes at different times.

In order to encourage us to save for our old age, the Government gives tax relief on pension contributions. For most taxpayers, an £80.00 contribution to a pension plan will attract a £20.00 contribution in the form of tax relief from the Inland Revenue (tax year 2008/09). For a higher rate tax payer this means for every £60.00 invested, the tax relief will be £40.00.

Pensions are long term investments, and you are unlikely to accumulate enough capital by having cash on deposit alone, other options are available, and need to be tailored to your individual needs.