FBW Financial Planning: Pensions

Most of us now recognise the need for planning ahead to save for our retirement. There is an increasing emphasis on the need for individuals to pay into private pensions so we don’t need to rely on government handouts in old age. The basic state retirement pension or ‘old age pension’ as it is commonly known is not really sufficient to provide anyone with a comfortable retirement, even when supplemented by the additional earnings-related state benefits.

The value of state pensions is likely to reduce even further in the future as the proportion of older retired people in the population increases, and the proportion of working taxpayers reduces. It is therefore essential that we save for our retirement in the most tax efficient manner possible. A Pension Plan provides just such a facility.

With ever changing rules surrounding pensions from the introduction of stakeholder pensions to pensions simplification, the number of retirement planning choices increases. Are you better off in a money purchase or final salary scheme, in an occupational scheme or a personal pension and which pension funds offer your preferred level of risk and desired growth potential.

Also as you approach retirement, you will need guidance as to what's the most appropriate way to draw your pension benefits. Is it through a conventional annuity, phased retirement, Pension Fund Withdrawal or a combination of these? We can advise you on every aspect of pension and retirement financial planning.