How to maximise your pension benefits

You can enjoy the benefits of a good pensions income by contributing to a workplace or private pension savings.

Wirral’s ageing population

According to the latest government statistics, around 26% of the population of the Wirral are over 60 years of age. A high proportion of these people are retired, but may still be able to increase their pension benefits.

Working people under 60 should have made financial plans for their retirement. If not, it is advisable to seek professional pensions advice from an independent financial advisor. If you are a Wirral resident who has retirement savings, they may not be invested in the best schemes to provide maximum returns. Expert pensions advice can suggest ways to maximise your pension benefits.

Pension pot choices

When you are 55, you have choices about how and when you can access your pension savings, often referred to as ‘the pension pot’. If you are employed, your pension pot will have accumulated in a workplace pensions scheme. Alternately, you may have set up your own private scheme.

Your first choice is to do nothing and simply leave your money invested in the pension scheme. Alternatively, you can purchase an annuity which provides a guaranteed income for life. You can take out the whole pension pot, but this will be taxed, or you can take out a portion of the pension pot. It’s also possible to mix up these options; for example, you could take out a portion of your pension pot as well as purchasing an annuity.

You can take out up to 25% of your pension pot tax free.

Carry on working

You do not have to be retired to access your pension pot. You can carry on working and still enjoy pension benefits. Any income you receive from your pension savings will be considered when calculating your tax bill.

Your pension may not be enough

It is helpful to calculate your likely pension income when you retire. If you are enrolled in a workplace pension scheme, you may be contributing the minimum required by the scheme. You will also be entitled to a state pension, but you may be surprised to find that the combined total income from your pension pot and the state pension will not support the lifestyle you are accustomed to.

This is why it is worth considering investing in additional schemes. You could invest in the stock market either by buying shares on individual companies, in an investment fund, or through a tracker fund.

Start now

If you have not got a sound strategy for maximising your pension benefits, it’s advisable to start now on choosing your options. If you have started work, it is never too soon to begin retirement planning by putting a regular monthly amount into pension savings.

Endeavour Financial Planning provides expert pensions benefits advice. We are committed to finding ways to maximise pension benefits for Wirral residents who aim to have a happy and prosperous retirement. Talk to Endeavour today to discuss your future pension benefits.

Posted by Alan
2nd February 2018

Disclaimer

All blogs and news on Endeavour Financial Planning are for information purposes only and are not intended to provide advice. Please seek the advice of a financial advisor before making any financial decisions.

Pensions

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