Retirement Strategies and Solutions

Most of the retirement solutions we use when building your financial plan are in reality, investments that contain attractive tax treatment whilst in the accumulation and de accumulation phases.  Whether you need to establish or review existing retirement planning strategies, we will ensure that any solution we recommend not only matches your goals and financial objectives but dovetails perfectly into your financial plan.

HomeOur ServicesRetirement Strategies and Solutions

Why do you need a family financial plan?

Watch our brief video to discover how our clearly defined financial plans help our clients accumulate and protect their wealth in the most tax efficient way.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Many people are unaware that there is a restriction on the total amount you can invest in a pension fund over their lifetime and each tax year. The more you pay into a pension, the more it costs the Treasury in tax relief. Consequently, the government impose a LTA – a ceiling beyond which your excess pension savings are likely to be subject to a future LTA Tax Charge – and the AA – a ceiling beyond which pension contributions in excess of the AA suffer a tax charge to remove the effect of tax relief in that tax year.

The LTA applies to the total value of all your pension pots, including any final salary schemes you belong to, but excludes your State Pension.  On 6 April 2016, the government cut the LTA from £1.25 million to £1 million but it began to rise by the annual rate of Consumer Price Inflation (CPI) from 6 April 2018 and is now £1.03m for the 2018/19 tax year. Anyone who breaks this limit could also suffer a 55% tax penalty when those savings are withdrawn.

The AA is £40,000 for the 2018/19 tax year.  Anyone whose total pension contributions from all sources exceed this amount will suffer an AA Tax Charge that will effectively remove the benefit of the tax relief received on the excess pension contribution amount in the current tax year.  On 6 April 2016 new rules were introduced to ‘taper’ the AA for ‘high earners’ to reduce the costs of pensions tax relief that the Treasury pays to ‘high earning’ individuals who make retirement provision.  This may affect individuals that have total taxable income in excess of £110,000 in a tax year.  As a result of these rules and an individual’s income level an individual’s AA in a tax year could be reduced to £10,000.

Please note that if an individual exceeds their AA (standard or tapered) in a tax year then they may be able to offset the excess contributions by carrying forward unused AA from the three previous tax years.  This option is available to individuals there were members of a UK pension arrangements in the previous tax years.

Whilst £1.03 million might still seem quite a generous allowance, the general reductions in the LTA since April 2012 has the potential to wrong-foot many more individuals in both the public and private sectors, despite the Chancellor’s claim in his Budget statement that only 4% of the wealthiest savers would be affected. Even if your pension savings are well below the lifetime allowance, a combination of good investment returns and future pension contributions could mean your pension savings exceed the limit before retirement.

We would usually begin the retirement part of financial planning by conducting a thorough audit and review of your existing pension arrangements. A review will help determine if you, or your employer, should continue to fund your pension, or if tax efficiency your goals could be better achieved by diverting contributions to alternative investments, dependent on your own financial circumstances and you attitude to investment risk.’

There is one golden rule with retirement planning. Work out how much money you think you are going to need after you retire – a figure we call your ‘magic number’ – and then start planning for it straightaway.It does not matter when you intend to retire, if you do not start planning for it now, there is a real danger that you could outlive your savings. It will soon no longer be unusual for people to spend nearly as long in retirement as they did in employment.

Calculating how big your retirement fund needs to be is relatively simple. Take into account all your likely living costs to estimate how much annual income you think you would need from 65 onwards. Allow for inflation and then multiply the figure by 25. This gives you your ‘magic number’, the retirement fund you will need to provide the income you require based on current annuity rates.

At our disposal we have a range of solutions to help provide for your retirement, no matter what stage of planning you are at. You must have flexibility in all aspects of your planning as your needs will change as your future earnings and career evolve.

Whether you are self-employed or employed we offer a service that is personal to you, delivering bespoke solutions that align with your overall financial plan. Planning your retirement with us puts you in control, so that you can be confident about your future pension.

The value of a pension will be directly related to performance of the funds selected, and will fall as well as rise. You may get back less than the amount invested.

Whether you are nearing or at retirement this stage of your life is particularly important. There are many options to consider, each with their own set of pro’s and con’s.

Equally, there are a number of solutions available in the market to allow you to receive a sustainable income during your retirement. There are also other aspects to consider such as the flexibility and availability of lump sum withdrawals from your pension funds and the effects of taxation. We offer a thorough interpretation and planning service for clients who are at this stage in their lives.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Self-Invested Pension Plans (SIPPs) give a much greater range of investment options than those available through most traditional pension plans. Investment is allowed in a number of assets and asset classes including equities, unit trusts, gilts and commercial property.

SIPPs tend to have higher costs than a standard pension and active management is essential to maximise the benefits of the wider investment choice on offer. For these reasons, they will not be suitable for everybody and generally only those who are fairly experienced at actively managing their investment should consider this type of investment.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances. 

The value of a SIPP can fall as well as rise. You may get back less than the amount invested.

Pension legislation and the way benefits are provided have changed so much over recent years that many employers feel that they are no longer in total control of this important employee benefit. In addition to this, the introduction of auto enrolment has had an effect on all employers, no matter how small.

As a director or business owner, it is your obligation to understand this legislation, what the process will be, how it will work, what duties you must comply with and when to take action.

We work closely with employers to make sure:

  • You understand the requirements surrounding auto enrolment and ensure you are compliant with legislation
  • You understand the extra administrative burden placed on you as a result of auto enrolment, and assist to make it as painless as possible
  • When seeking to recruit new staff, the pension scheme offered by your company will enhance the package on offer, aiding the recruitment – and retention – of a better quality of staff
  • You are in the best possible position to be prepared for any future changes, either legislation or specific to your company

St. James’s Place has relationships with a number of carefully selected market leading pension providers, allowing us to advise on a range of pension products.

The value of a pension will be directly related to performance of the funds selected, and will fall as well as rise. You may get back less than the amount invested.

Trustees have a vital role to play in the running of a defined benefit scheme, as it is a complicated, time-consuming and often expensive process. Essentially, they ensure that the scheme benefits are protected for members.

Their responsibility in maintaining services that are not only comprehensive but also provide good value is a constant challenge. Knowing where to turn for help can be a daunting prospect.

We understand the priorities and concerns that face trustees and we have a number of solutions that can help. Through our Professional Trustee Solutions, we provide a bespoke strategy for trustees incorporating cost effective actuarial and administrative services combined with our Approach to Investment Management.

The value of a pension will be directly related to performance of the funds selected, and will fall as well as rise. You may get back less than the amount invested.

LEARN MORE ABOUT OUR EXPERT FINANCIAL PLANNING PROCESS

At McGarvey Jones Financial Planning we recognise that our clients are central to everything we do. We are committed to developing long-term relationships with our clients to help them build, preserve and protect their wealth.

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If you have any questions or would like to know more about our services please do get in touch, our team will be happy to help.

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McGarvey Jones

The Partner Practice represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services, more details of which are set out on the Group's website www.sjp.co.uk/about-st-james-place/our-business/our-products-and-services.

The 'St. James's Place Partnership' and the titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.

McGarvey Jones Financial Planning is a trading name of Richard McGarvey & Co Wealth Management Limited. Richard McGarvey & Co Wealth Management Limited is registered in England and Wales, Number 09760446. Registered Office: 2a Swordfish Business Park Swordfish Close, Higgins Lane, Burscough, Lancashire, United Kingdom, L40 8JW.

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