Pension Advice

infoThe value of the investment can go down as well as up and you may not get back as much as you put in.

 

I have dealt with New Leaf Financial Services Ltd for all my pension requirements.  Although the financial world has had its difficulties in recent years, the advice given by them has seen my pension fund continue to increase throughout which goes to show the quality of advice given. Now that I am approaching retirement age they have advised me on Life Styling, i.e. moving parts of my portfolio to safer options. Should we experience further financial turmoil, hopefully I will not be affected as much and I see this as maximizing my pension benefits. I can recommend their services to anyone and do to friends and family.

Mike – Meltham, West Yorkshire.

Pensions Advice

It is essential to receive quality independent pension advice, as the subject of pensions generally can appear very daunting at first glance.

Why do you need a pension?

A pension will help you live comfortably when you retire and can provide you with a guaranteed income for life. Whilst most people will be entitled to a pension from the state, this will only provide a modest income and the age at which you qualify, continues to increase. For many people, this is now 68.

Having your own pension in addition to that provided by the state, will ensure that you have more money to live on in retirement, enabling you to enjoy a better standard of living without having to worry about how you are going to pay for all the things that you want to do.

We were not hurried into making quick decisions, Mark helping us to find the right investments to suit both our current and future needs”
Kevin & Angela, Halifax

People now live much longer than they used to do, meaning that the amount they save in their pension has to stretch over a longer period. As a consequence, it’s vital to save the right amount and from the earliest possible opportunity.

Many older people either live in poverty or very close to it and the simple reason for this is that they have been unwilling, or unable to save adequately for their older age. Do you wish to be like them, or do you wish to enjoy your retirement, financially secure?

Don’t fall into the trap of thinking retirement is ages away and you can ‘always start saving later’. The golden rule with pensions is ‘the earlier, the better’, as the longer period of time you save, the longer time that your money has to grow.

Do you want to retire before state pension age, or gradually reduce the hours you work? If so, having your own pension could help you achieve this, enabling you to enjoy a longer retirement.

How do pensions work?

The common perception that pensions are complicated cannot be further from the truth. Quite simply, you save an amount each month (or contribute lump sums, or both), into a scheme that will provide a lump sum and an income, when you retire. The more you save and the longer period you save over, the higher your income will be. You can easily increase or decrease your level of savings to suit your circumstances and even take payment breaks.

There are a number of different ways to save into a pension. If you are employed, your employer may contribute to a scheme for you. Alternatively, you can save into a personal pension, run by a company of your choice. Many people can (and do), both.

Either way, pensions are very tax efficient, because tax relief is currently available on the contributions that you make (subject to certain limits), up to the highest rate of tax you pay. For example, a basic rate tax payer would only actually pay £80 out of every £100, with the state paying the rest.

The money that you and the state contribute is invested, which hopefully, over a period of time, will grow sufficiently, to provide you with the level of income you require in retirement.

Pension transfers

Many people have a number of different schemes from previous employments or individual plans which they consider to be dormant and they receive no advice on. It is vital to receive advice on such contracts, because there may be far better value plans that it is possible to transfer into.

Or you may wish to consolidate a number of older and / or existing plans into a single more flexible arrangement, in order that you can more easily ‘keep a track’ of what is going on with your pension plans.

We will review any existing pension scheme you may already hold and advise you on its continued suitability. If we consider it to be unsuitable, we will recommend a transfer to another product.

Pension reviews

Once a plan has been set up, it is vital to have it reviewed on a regular basis (typically annually), in order to ensure it is still meeting your needs. A core part of our philosophy at New Leaf Financial Services Ltd, is to deliver this service.

When you retire

Based on current legislation, you can retire anytime from age 55.  You can normally take a tax free lump sum from your pension, with the remainder providing you with a regular income. There are many different options available at retirement since pension legislation changed in April 2015, with regard to the type, level and frequency of income you require and we will advise you of all these options at the appropriate time.

New Leaf Financial Services helped secure the best deal for me, at my recent retirement. They explained everything ‘jargon free’, which in today’s complicated financial world is very refreshing. I feel that my decision to use an Independent Financial Advisor to assist with my retirement has been totally vindicated.

Ian – Meltham, West Yorkshire.

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