When it comes to pensions, ‘the earlier the better’ when it comes to starting to save for one. Failing that, it’s often ‘better late than never’.
An early start can give you the bonus of compound interest over time, making a small contribution earlier on in your career can be worth more than larger investments later on. Every pound that you invest is also boosted by tax relief. As an eligible employee, you’ll have access to a workplace pension, as all employers must offer this by law. Alternatively, if you are self-employed, you would have to source your own personal pension.
If you have a defined contribution pension, you will now have access to it from the age of 55. You’ll be able to withdraw up to 25 per cent of your pension pot tax free, with the remainder taxed at your marginal rate.
If you are looking for clarification on how you can invest your pension pot for the future, then consider talking to Mark Evans or Matt Hignett, who would be happy to consider your options and provide you with impartial advice specific to your circumstances. The options open to you include investing for income, drawing out lump sums, purchasing an annuity, or any combination that suits your individual needs in retirement.
Seeking pension advice from us can help you with all aspects of pensions and retirement planning, whether you are just starting to invest in a pension, or approaching the stage in life when you will need to use it.
Mark has worked in Financial Services since 1993 and is a Chartered Financial Planner. He is a member of the Institute Of Financial Planning and the Personal Finance Society. He specialises in pension and investment planning for business owners, company directors and private clients.
Matt is a qualified Independent Financial Adviser and is working towards becoming a Chartered Financial Planner. He is a member of the Institute Of Financial Planning and the Personal Finance Society. He has always had a flair for investing and the stock market, having years of experience investing on a personal level.