Pension Awareness Week 2020
14th-18th September is Pension Awareness Week
The world of pensions is very complicated, and many people aren’t aware of how much they should be saving into their pension pot, what types of pension scheme are available and what their options are for drawing a pension when they do retire.
Pension Awareness Week aims to raise awareness about the importance of pensions and encourage people to learn about the different options available.
The earlier you start, the better
Many people put off thinking about pensions and retirement until later in life. However, the earlier you start thinking about it, the better.
Since 2018, it’s been compulsory for employers in the UK to automatically enrol staff that qualify into a workplace pension. Although this means many people are provided with a pension automatically, you can also take out a personal pension as well, of which there are various types available. This could help you save up more in your pension pot.
If you’d like to start saving more for retirement or simply find out what your options are, a financial adviser can help.
Find out your options for drawing a pension
In 2015, “pension freedoms” were introduced, offering more flexibility around how you access your pension once you reach retirement age.
For example, while there is still the traditional option of purchasing an income via an annuity, you can also withdraw part or even all of your pension pot as a lump sum. You can withdraw 25% tax-free, and everything after that is taxed at your marginal rate. The downside of this as opposed to an annuity is that you have the responsibility of ensuring that your pension lasts. However, taking a lump sum can be a good option for some people.
A financial adviser can review your situation and help you decide on the best way for you to use your pension pot.
Learn more with AFH guides
Our basic guide to pensions is free to download and explains all about the different types of pension scheme available, how tax relief works on pensions and how you can get the most out of the tax benefits available.
For higher earners, our pension tax planning for higher earners guide explains the tapered annual allowance and how you can manage it to make the most of your pension savings.
A financial adviser can help you with pension planning
If Pension Awareness Week has made you want to create a proper plan for retirement or review your current pension arrangements, then speaking to an adviser is a great place to start.
At AFH, you can book a free consultation with one of our advisers to find out how they might be able to help you. There’s no obligation to continue – it’s simply an opportunity for the adviser to get an idea of your goals and for you to ask any questions you may have.
Start your pension planning journey today by speaking to an expert.
This article is for generic information only and is not suggesting a suitable investment strategy for you. You should seek financial advice that takes your individual circumstances into account prior to proceeding with any course of action.