Retirement Planning

Many clients approach us with concerns about their income in retirement.

The main concerns may be:-

• at what age can the pension benefits be received?
• will the overall initial income be sufficient?
• can the income be changed each year if required?
• what affect will tax have?
• will there be enough increase to pay rising expenses?
• what will happen on the death of a spouse or partner?
• will the children be provided for?
• what is the Inheritance Tax position?
• are there ways of improving income later on?

Planning for retirement income may therefore be a question of balance.  It is important to look at the overall picture and this should take into account information such as:-

• pension funds or benefits available
• other available capital (for say emergencies or immediate expenses)
• other current investments
• current expenditure
• tax position
• the overall personal and business situations
• changes in health and lifestyle
• provision for spouse, partner or dependants
• future objectives or requirements
• future expenses
• potential availability of future investments or capital

Our service will gather sufficient information to provide a summary and report with an indication of current and projected income during retirement.

Options for the Withdrawal of Pension Benefits

The changes introduced by pension "simplification" on 6th April 2006 will include the following:-

• additional opportunities for the withdrawal of pension benefits
• changes to the amount of lump sum that can be withdrawn free of tax

All the options need careful consideration before a decision is made and it is important to understand the pitfalls and benefits of each.

We are experienced in calculating and comparing the various ways of arranging pension withdrawals, including:-

• guaranteed annuity payments
• "open market" optional alternatives
• enhanced annuities based on lifestyle or health
• investment-linked annuities
• temporary annuity and investment linked plans
• income withdrawal or "drawdown" planning
• alternatively secured pension arrangements (ASPs)

 

 

 

 

 

 

 

 

Bausor Hall Financial Services Ltd (FSA Registration: 224098) is an appointed representative of Burns-Anderson PLC (FSA Registration: 126191), 27 Great George Street, Bristol, BS1 5QT which is authorised and regulated by the Financial Services Authority.

Some products and services may not be regulated by the FSA

Bausor Hall Financial Services Ltd is a company incorporated in Cardiff Registered No 4571385.  Registered Office 38-44 Binley Road, Coventry, CV3 1JA