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Pension Planning

You should have so much to look forward to when you retire. Yet how you prepare and build up your pensions could have a big impact on what your future looks like. And your ability to do the things that matter to you.

Hopefully you’re already paying into a pension. But as they offer lots of valuable benefits, it’s worth checking if you’re doing enough to boost your retirement lifestyle.

Doing more with your pensions

Reasons to consider pension planning

  • Make more of your pension tax benefits
  • Potential to grow your wealth
  • Feel more confident about retirement
  • Greater freedom when using your pension savings

Pension planning advice from Skipton

  • In-depth review of your current plans
  • Advice tailored to your needs
  • Recommendations on building a retirement strategy
  • Free to find out if financial advice could be right for you

Important information

A pension is a long term investment and your Capital is at Risk. Your fund value can go down as well as up and you could get back less than you paid in. The tax treatment of pensions is dependent on your personal circumstances and prevailing legislation which may change in the future. Your eventual income will depend upon factors such as the size of your fund at retirement, future interest rates and tax legislation.

Book your FREE initial consultation about Pension Planning

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What is pension planning?

Most of us pay into a workplace pension. It’s a contribution you might notice on your wage slip, and not think too much about.

But it’s never too early to start considering if you’re on track to have enough money to achieve your retirement goals. And if you could be doing more to prepare.

Our Pension Review Service

At Skipton we’re helping thousands of people plan towards a fulfilling retirement. Our team of financial advisers are ready to do the same for you.

Our pension review service could give you a clearer picture of how much money you’re on track to achieve in retirement.

We’ll carefully review what you have, including any pensions you have from old jobs. This includes checking their performance, future prospects and any valuable benefits they offer.

We offer financial advice to anyone with £20,000 or more to invest, or to people who are able to make monthly contributions of £500 or more. Where you require advice on existing investments/pensions the minimum value required, including the investments/pensions under review, is £50,000.

How much do you need in a pension to retire?

That’s the big question. And the answer is…it depends. Your retirement goals are personal, and you ideally need enough money to achieve what matters to you.

To achieve a comfortable retirement lifestyle, you’re likely to need more than £200,000 saved up in a pension. That might seem like a lot. But it is possible.

As this table shows, the earlier in life you save, the more manageable it will be.

Target value at 65 From age 30 From age 40 From age 50
£100,000 £89 £168 £375
£250,000 £221 £420 £936

How we worked this out:

  • We’ve assumed your underlying pension investment will grow by an average of 5% a year. If your investments grow by a lower amount, you would need to save more to achieve your target. Please note this is an illustrative example only.
  • We’ve also assumed you’ll retire at 65.
  • Contributions are before tax (ie gross). It is also based on a single life pension and doesn’t factor in the rate of inflation.

One thing is certain – the sooner you pay more into a pension, the better chance you have of achieving the retirement you deserve.

Frequently Asked Questions

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What are the benefits of investing in a pension?

There are some brilliant tax incentives available for defined contribution pensions. If you have a workplace pension, your employer will pay into it too through employer matching.

Beyond that, it might also help to set up another pension to boost your plans.

  • When you invest into a pension, you automatically receive an extra 20% in your pot through tax relief. If you’re a higher or additional rate taxpayer and claim for it, you can get tax relief of 40% or 45%.
  • You can usually pay in up to £40,000 each tax year (or, if you earn less than £40,000 a year, 100% of your net relevant earnings) and benefit from tax relief.
  • If you’ve not made full use of your last three annual pension allowances you can usually carry them forward and make the most of tax relief.
  • You can build up to £1,073,100 over your lifetime and still enjoy the full tax benefits.
  • When it’s inside a pension wrapper, there’s no tax to pay on any growth you achieve.
  • You can’t normally access your pension until you’re 55 (or 57 from 2026).
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What about using your defined contribution pension?

  • 25% of the pot is tax-free to withdraw. You pay tax on the rest in line with income tax bands.
  • No restrictions on how you use your pension when you withdraw from it.
  • When you retire you could keep your pension invested, using it to draw an income or take lump sums. This gives your pension the chance to continue to grow further, although your capital is at risk.
  • If you want more security, you could use your pension to arrange a guaranteed income through an annuity.
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How can Skipton support me in managing my pensions?

We’re here to offer as much or as little support as you need.

For example, we could help you to set up a new pension to invest your money in, which you can manage yourself. We’ll research and present options suited to your personal circumstances.

If you’re looking for more help and are happy to pay an ongoing charge, we offer a range of ongoing service options that can help you prepare for retirement and even help you keep on top of your plans after you take the plunge.

We offer financial advice to anyone with £20,000 or more to invest, or to people who are able to make monthly contributions of £500 or more. Where you require advice on existing investments/pensions the minimum value required, including the investments/pensions under review, is £50,000.

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How long does it take Skipton to review my pensions?

The great thing about our pension review service is we will do all the hard work for you.

Your pension providers will supply us with detailed information. This allows our in-house experts to analyse the strength of your plans.

Depending on your situation, this research might take a few months to complete – that’s so we can get a really accurate picture for you.

But at the end, we promise you'll be in a position to make informed decisions about your future.

Request a call back today

Book your FREE initial consultation to find out if financial advice might be right for you. Simply fill in your details and we’ll be in touch at a time that suits you.

What to expect

  • The call will take as little or as long as you need.
  • We'll ask a few questions to understand your situation.
  • You'll also be able to ask any questions you have and find out how we could help.
  • And, there's no obligation to take things any further.

Alternatively you can call us on 0800 731 5342

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Site intended for UK residents only. Skipton Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice.
Principal Office, The Bailey, Skipton, North Yorkshire, BD23 1DN.

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