The 55 Plan
One of our most popular areas of financial planning is around future income planning or otherwise known as retirement planning. Although the government has implemented Auto Enrolment Workplace Pension Scheme to encourage individuals to save for their retirement, we feel that more can be done to help our clients achieve the later lifestyle they deserve..
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We use 55 as a target age when planning for retirement as this is currently the earliest you can access personal pension plans (changing to 57 in 2028) and gives our clients something to aim towards. We are passionate about helping people in their 20’s to 40’s achieve their desired retirement through simple tax-efficient saving and investment planning. This provides them with an opportunity for growth while still having access to some of your money in an emergency
In simple terms, it’s all about investing as much money as you can afford each month within the annual allowances over the long-term with the aim of maximising growth potential and building up a significant fund of money in a tax efficient way, accessible from 55+. Although the fund you hold within a personal pension cannot be drawn until you reach the age of 55, an ISA is more flexible, and fund can be accessed at any time you need them.
Utilise 20-40% tax-breaks from a personal pension (dependent on your tax bracket)
Enjoy tax-free growth and flexible access of an investment ISA
Combine it with long-term compound interest
The investment risk and subsequent growth potential can be tailored and monitored to your personal attitude to financial risk and capacity for financial loss profile and reviewed on an annual basis, please note that annual reviews are an additional service and are subject to an additional charge.
Please amend to “Currently, you can receive tax relief on contributions up to £60,000 per year into your personal pension and enjoy tax-free growth on £20,000 of contributions paid into your personal investment ISA.
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When you reach 55 you will have various choices which could include:
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Taking up to 25% of the pension fund as a tax-free lump sum
Start taking a flexible income from the pension fund and top it up tax-free from the ISA
Leave it all invested to maximise growth potential for a later date
The value of pensions and investments and the income they produce can go down as well as up and you may not get back the full amount that you originally invested.
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This is general information only and does not constitute advice