Personal retirement planning is essential for everyone, regardless of employment status. Whether you are employed, self-employed, or currently out of work, it’s crucial to start building your pension fund as early as possible. Given the significant tax implications on personal pensions, consulting with a retirement planning specialist can help you determine the best way to manage and draw from your fund.
Personal pensions can be independently organised or part of a workplace pension scheme, often referred to as a defined contribution scheme. The concept is straightforward: you contribute to a pension pot managed by a pension provider. Since the benefits offered by different providers can vary, it’s important to find the most profitable personal pension plan for your needs—that’s where I come in.
I can help you determine the ideal amount of income to contribute to your pension, taking into account your current expenses and desired standard of living in retirement. By discussing your personal risk tolerance and retirement goals, I can recommend pension schemes that are likely to yield the highest returns. Many clients find tax percentages confusing, but I can help clarify the entire process for you.
Pensions are constantly evolving. For instance, in 2024, the state pension increased by £17.35, bringing it to £221.20 per week or £11,502 annually. I stay updated with the latest policy and regulation changes to provide you with the most relevant information. Given the tax implications associated with pension pots, I can also advise you on the maximum amount you can save without incurring heavy deductions.
To discuss how a personal pension can benefit you financially, contact Michael Reed today.
