Pension Planning - HPL are Pension Specialists

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You may wish to set up a Personal Pension if you are employed and not in a company pension scheme, or as an addition to a company pension. 

You may also wish to set up a personal pension if you are self-employed or if you are not working but can afford to put aside money for retirement. 

The final value of your pension fund will depend on how much you have contributed and how well the fund's investments have performed.

1. Payments In - You can typically save into a pension plan in either of these ways:

· Regular instalments 

· One-off investments

· A combination of the above

2. Tax Considerations - For individuals contributing to a personal pension or stakeholder plan, the contribution is made net of basic rate tax. Here you can enjoy tax relief at your highest marginal rate, or even Corporation Tax if paid by the Employer.

3. Investments - You will have to decide on the type of fund in which you invest your money. Most pension providers have a wide range of funds available.

With pensions being most people’s second-largest asset, they can become a major consideration in any divorce settlement.

Your pension should be included in your financial settlement if you divorce or dissolve your civil partnership. If you’re not married, or in a civil partnership, your pension can’t be shared if you separate.

You can split pensions several ways, so it’s worth understanding the options before deciding what’s best for you.

Those approaching retirement today have many more opportunities and challenges to face than their parents ever did. There are also many more ways to fund retirement, adding to the confusion about how to best prepare for all your needs.

Life expectancy is increasing, and the higher likelihood of us living longer into retirement presents an important question - will we have enough money to enjoy the lifestyle we desire and to last us, once we have stopped work?

Although it may seem a long way off, making robust financial plans now for late retirement will give you the peace of mind to enjoy your early retirement years - safe in the knowledge that you will be able to live the lifestyle you desire further down the line without struggling.

Call 0161 519 8500 to speak with an adviser.

Income Drawdown plans are complex. It is a more flexible alternative to the traditional annuity route, offering greater choice and control for many people.

Annuities are historically the most popular option in retirement, with a great many looking for the security that they provide. 

However, it's unlikely that they will continue to account for as high a proportion of retirement income products as they have in the past. 

Typically, Income Drawdown suits people who are not averse to investment risk, and who have larger pension funds.

However, there are no guarantees that income will be greater than if the fund was used to purchase an annuity at retirement. There is also no guarantee that the initial income level selected will be maintained. The costs of Income Drawdown are normally higher than for an annuity.

On 6 April 2015 new pension rules came into force, giving you much greater flexibility over how you use your money purchase pension savings and the options you have in retirement.

These changes include the freedom to access the whole of your pension fund, more choice over how to receive the tax-free cash from your fund, changes to death benefits and changes to the contributions you can make.

Some of the new options are listed below: 

• Flexi-Access Drawdown (FAD)
• Uncrystallised Funds Pension Lump Sum
• Access to the New Pensions Options
• New Death Benefit Rules
• New Style Annuities