SWT Wealth Management
Advertising feature: Retiring from work used to mean stopping completely. But nowadays many of us choose to continue to work flexibly in our retirement; part-time, or self-employed. We also have more options available to manage our retirement income flexibly than ever before. Whether you need to start planning, or take another look at your existing retirement strategies, we can help you make the most of your retirement from day one.
Maximising Your Pension Fund
Retiring flexibly, is a fantastic feeling, but with it comes the need to make your money last as long as you need it to. This is the time of your life where you embrace tomorrow, and so you’ll want to use your pension fund carefully, so you take as much as you want to, when you want to but also ensure you have funds to last.
Pensions are still highly tax efficient. You get tax relief at your highest rate of tax on your pension, so it can play a key role in your retirement planning. This assumes that anything over the basic rate of tax is reclaimed on your tax return.
Your retirement will hopefully be a long and active one, so it’s important to get the financial planning right. It may be the first time for many years that you genuinely have the freedom to live life the way you want to, and we want to support you in that.
Nearing Retirement
Once you retire, the income sources you have now may be replaced by money from your pension. That’s what it’s there for! You could choose to use your pension fund to buy an annuity from an annuity provider. Annuities can guarantee you an income for life, no matter how long you live. Another option is Pension Drawdown, which means you can take an income from your pension fund, rather than buying an annuity.
Tapered Annual Allowance
The top line is, that from 6 April 2016, the annual allowance, now £60,000 per annum was tapered for high earners. With effect from 6 April 2023, tapering occurs where you have adjusted income in excess of £260,000 per annum. This means that you will see your annual allowance reduced by £1 for each £2 over £260,000, to a minimum of £10,000. The Tapered Annual Allowance is a complex area, and you may well wish to take expert financial advice on this. Do get in touch with us if you have questions.
Lifetime Allowance
There will be no Lifetime Allowance tax charges payable from the 2023/24 tax year, with the Lifetime Allowance due to be abolished in the 2024/25 tax year. Therefore, we recommend that you make sure that you’re making the most of this as part of your retirement planning.
Choosing how we manage our money and aiming to have enough to live comfortably in later life is a highly personal choice.
Let’s turn later living into a greater living.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.
The level of income from pension drawdown is not guaranteed. There is a very real chance that you may need to reduce your drawdown income in the future, in particular if the performance of your investments is lower than expected, or you live to a greater age than originally anticipated when choosing your initial income level.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.?
SWT Wealth Management is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms.
To find out ways we can help visit: www.swtwealth.co.uk or contact us on 029 2252 0168 or 07946183512
SJP Approved 13/06/2023