Retirement Planning
Retirement planning is increasingly important both in terms of maximising the taxation concessions that are available and achieving tax efficient growth of funds invested.
AJHFS are able to advise on Stakeholder Pensions, Personal Pensions, Self-Invested Pensions and Executive Pensions - across the entire provider market.
Pensions are still extremely attractive. Subject to certain limits, taxation relief is still available at 40%. The Pension Fund itself is free of Capital Gains Tax and in general terms up to 25% of the Fund will be available as tax free cash.
A vast range of assets can be held within a Pension Fund including unit trusts, collective funds, commercial property, stocks & shares and even cash.
At retirement, there are now a number of options apart from the purchase of an annuity. Income Drawdown in particular has created enormous flexibility including the possibility of releasing tax free cash without actually drawing any form of income.
Choice of pension type is obviously important. However, choice and spread of investments to hold within the pension vehicle are equally crucial.
Existing pensions also need to be reviewed both in terms of charges and fund performance ~ quite often better fund performance may be available elsewhere together with a more competitive charging structure. The combined effect of these two factors can be substantial.