Why have a Pension?

I had a coffee with an old friend the other day who said, "I don’t want a pension". It somewhat threw me off course in our conversation, as a financial adviser your instinct is to defend a product you recommend to people every day. However, he pointed out to me, that he doesn't plan to ever officially retire and have his own property business.?

What is the point? A UK pension gets tax relief on contributions you and employer put in, all investments grow tax free and on drawdown you get 25% tax free with remainder taxed at marginal rate. The UK government gives plenty of incentives for people to put money into a pension and from their perspective are happy to encourage people planning for retirement.?

The current age you can access a UK pension is 55 and increasing to 57 from 2028, some pensions won't let you access before 60 or 65. If you want to have ultimate flexibility does a pension offer you that? Since 2015 and the pension freedoms which George Osborne brought in, people have far greater flexibility than ever before. You can now access a pension flexibly and drawdown as and when you want, the money. Some people like to drip feed it as they are retiring from work, going from 5 to 4 or 3 days per week. Others might use it to enjoy a few luxurious trips early into their retirement whilst still having the mobility.?

Taking the first step often be the hardest part, contact us today for a no obligation meeting. Get in touch via [email protected] or +44 7527275684.?

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The value of your investment can go down as well as up. You could get back less than you invested.?

Taxation rules can change at any time and are dependent on individual circumstances.?

Twelve Wealth Management Limited 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).?

SJP APPROVED 29/10/2024