Pension and retirement options – staying invested

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14 March 2018

Services:

Wealth planning & Private client

Further to our blog on the main pension options available at retirement, we now look more closely at the last of these choices staying invested, the pros and cons of this option and how it may impact on you.

In the UK you can get tax relief on pension contributions up to the age of 75. This makes it possible to use part of your pension to purchase an annuity or take an income through drawdown, with the remainder staying invested in a SIPP or other personal pension.

If your investments perform well this may mean you have more money to spend in later retirement, particularly when you take into account compounding – i.e. the snowball effect of your earnings generating more earnings over the longer term.

However, if your investments perform badly you could end up with less money in later life. You will also have a lower annual allowance for making contributions if you have used part of your pension to take an income.

We recommend our clients to Tilney, one of the UK’s leading private client investment and wealth management company who provide top quality, solid and practical pensions advice.

For pension advice, tax on pensions, auto enrolment, defined contribution, defined benefits, transfer values or any other advice please contact Charles Coade direct on 0113 224 5544 or email charles.coade@tilney.co.uk or via our Leeds office on 0113 398 1100 or email leeds@hwca.com