Retirement
Planning for your retirement is a balancing act. We all want to have a comfortable retirement but we may not be able to put enough of our current income into a pension plan to get our dream pension. We may have to (or want to) spend most of our income on our day to day living rather than tie it up in a long term policy which we can only access when we retire.
Although there are tax benefits associated with paying into a pension plan, many people are put off by the complex rules and by the restrictions placed on the ultimate access to their money. Whilst there are alternatives to pension plans for saving for retirement, new legislation aims to simplify the rules and ease the restrictions to encourage more people to save for their retirement. These new rules came into effect in April 2006 and represent a radical overhaul of the pensions legislation.
The alarming fact is that many people have little or no pension provisions other than the state pension but this will not provide a comfortable retirement - its current rate it is about £85 per week. Recent publicity about employees losing their pensions when company schemes wind up and the poorly performing stock market have however done little to boost confidence in pensions.
It is never too soon to start a pension but do not despair if you have not yet done so. Taking, and acting on, professional advice can put you in a better position than relying solely on the state pension, whatever your age.
Once you have invested in a pension plan, there is a tendency to sit back and relax. Pension planning needs to be reviewed regularly to ensure you are still on target to achieve your retirement aims.
- Overview of pensions
- The state pension
- Pensions provided by your employer
- Pensions you arrange yourself
- Your pension questions answered
- Glossary of commonly used terms
- The new rules effective from April 2006
For more information, please contact Peter Ingham, our Pensions Manager, at peter.ingham@cassons.co.uk or 0845 337 9409.
