One of our most popular areas of financial planning is around future income planning or what we like to call your 55plan.
Have you thought what life could be like at 55? We believe in living for today but planning for tomorrow.
Do you like the sound of paying your mortgage off early, working less hours and improving your work/life balance or simply having more disposable income to do the things you enjoy?
Although the government have encouraged employers to help with Auto-Enrolment Workplace Pension schemes, we feel a lot more can be done to ensure our clients achieve the later lifestyle they deserve.
Would having access to a significant amount of money when you reach 55 make things a little easier? We use 55 as a target age as that's the earliest you can access personal pension plans and gives our clients something to aim towards,
We're passionate about helping people in their 20's, 30's and 40's achieve this through simple, and tax efficient savings and investment planning. This gives you maximum opportunity for growth while still having access to some of your money in an emergency.
Statistics suggest that over 50% of people in the UK are not saving enough to provide for later life.
We're working with a number of companies ad professional sports clubs to ensure this is not the case for our clients.
When is the best time to start saving for my 55plan?
We understand that your personal situation can dictate the amount you are able to set aside each month.
With this in mind we recommend to start as early as you can and simply adjust the amount you contribute in-line with changes in your circumstances. Whether you've recently left home and started work-life or have a family and an established career, now is the time to start getting serious and plan ahead. Putting the necessary plans in place now will simply give you more choices, greater financial freedom and enhanced peace of mind.
So how does the 55plan actually work?
In simple terms, it's all about investing as much money as you can afford each month over the long-term so that you can maximise growth potential and build up a significant pot of money accessible from 55+ (you can still access some of it at any time).
1. Utilise 20-40% tax-breaks from a personal pension (dependent on your tax bracket) 2. Enjoy tax-free growth and flexible access of an investment ISA (Individual Savings Account) 3. Combine it with what many call the eighth wonder of the world; long-term compound interest The investment risk and subsequent growth potential can be tailored and monitored to your personal attitude to risk and capacity for loss profile and reviewed on an annual basis.
As we are Independent Financial Advisers, we have access to the whole market and can choose cost-effective providers that suit your requirements. We will discuss and agree an affordable contribution amount that can be made flexibly on a monthly standing order basis and/or as one off lump sum payments within each tax year to utilise your allowances.
Currently you can receive tax relief on contributions up to £40,000 per year into your personal pension. You can enjoy tax-free growth on £20,000 of contributions paid into your personal Investment ISA. When you reach 55 you'll have various choices which could include:
* Taking up to 25% of the pension pot as a tax-free lump sum * Start taking a flexible income from the pension pot and top it up tax free from the ISA * Leave it all invested to maximise growth potential for a later date
We'd be delighted to explain this in more detail, discuss why it is so popular with the next generation of investors and help you get your 55plan up and running.
Information on this website is not to be taken as financial advice. All advice will be submitted in writing and tailored to you as a client once we have identified your needs and objectives, attitude to risk and capacity for loss.