Everyone hopes their retirement will be a time of relaxation, a period to enjoy well-earned rewards. Sensible financial planning can secure your quality of life in years to come and give you peace of mind now. It’s never too early to start thinking about later life, and guaranteeing a good retirement income takes considerable work.
Settling on a pension strategy is an important first step. There could be a variety of options that are suitable for your situation. Some people might want to pay into a pension fund and let it invest on their behalf, whereas for others controlling a self invested personal pension might be the best solution. There are also pension schemes designed specifically for company directors and owners that can be registered with HMRC, such as executive pension plans and self administered schemes. Have you thought about whether you will use your lump sum allowance when you retire, and if so how do you plan to invest it? Will you draw your income directly from your pension, or purchase an annuity, and if so which type? Pension rules are complex and constantly changing. We can advise on the different choices available, the allowances that might be applicable to you, the tax implications, and how to manage your money for the long term.
You might have other sources of potential income besides your pension, such as savings and investments. We can help you to review these and weigh up the relative levels of risk so you feel confident about your exposure. It might also be appropriate to consider your life insurance, long term care insurance or medical insurance.
It is vital to think about what will happen to your business when you retire. You might hope to sell it as a going concern, hand it over to a trusted colleague or relative, or simply wind it down. Whichever course of action you have in mind, it is more likely to be successful with careful planning and consideration of the tax implications, all of which we can assist with.