Retirement Planning and Pensions
There have been a number of developments in the world of pensions, including Auto Enrolment, topping up State Pensions and the new Pensions Freedom rules allowing more flexible access to pensions; all of which need advice from qualified advisers.
Many employers rushed into putting a scheme in place to comply with the requirements maybe not appreciating the importance of this piece of legislation.
A pension is a long term savings plan. Auto Enrolment is an extension of this concept where you as the employer make a contribution, as does the tax man and your employees. You as the employer are responsible for:
- Selecting a suitable arrangement that complies with government requirements
- Collecting the contribution from the employee
- Making a contribution from the company
As with any savings plan, the returns will only be as good as the underlying investments. This is where advice is required to ensure the arrangement you select is suitable for your employees and the underlying investment options will perform to expectation.
Employing the services of a Financial Adviser to provide advice to your staff can be a very cost effective employee benefit and should not be underestimated.
By employing salary sacrifice, both the employee and employer can benefit from a National Insurance Saving.
If you are an employer and you need help and advice on Auto Enrolment, please do speak to us as soon as possible on 0121 693 5000.
Topping up your State Pension
If you are a man born before 6 April 1951 or a woman born before 6 April 1953, for a limited period you can top up your state pension by up to £25 per week.
The cost varies according to age but, as an example, it would cost a 68 year old £4,135 to buy an extra £25 per week state pension.
The Pension Freedoms introduced in April 2015 has created great opportunities for income flexibility and ultimately using your pension plan to benefit future generations.
If you are at or above age 55, you are affected and should seek advice. If you are below age 55 you need to understand the new rules to appreciate the attraction of contributing to a plan.