* To get this full tax relief, you need to claim the extra 20% or 25% through self-assessment.
If you have a workplace pension, your employer is likely to pay into your pension too. This could further boost your pension pot.
Quite simply, a pension is a fantastic product that could make such a difference to your future. Offering you greater financial security.
It’s a really good idea to check your pension contributions. And think about if you could afford to put more away. Depending on their situation, we find some of our customers also benefit from setting up extra personal pensions.
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5. Review your pension plans to see if you can get your savings working harder
Are your pension savings invested in a way that’s right for you? Chances are it’s in a provider’s default scheme, which might be all well and good.
But there could be other, more effective options available – to help you get your money working harder. It all depends on your circumstances, including appetite to risk.
If you’ve already retired, you might be wondering how you could make your pension last. Or if you could even be spending more of it now.
We could help you to review your arrangements and build a plan that suits your circumstances.
6. Ask yourself – do you have sight of all your pension plans?
Here’s some good news: you might be further along than you think. The chances are you’ve changed jobs and employers over your career, meaning you may have been paying into different pensions.
Latest figures show there’s 1.6 million lost or forgotten pensions in the UK, adding up to over £19 billion in savings. This might include some of your money. For more information visit the article on the Unbiased website.
At Skipton, we offer a pension review as part of our pension planning service – where we contact your providers for you. We can check the details of your pensions. And advise you what you could be doing with them to support your overall plans.
7. Consider how to make the most of your pension – and your other savings and investments
Full retirement means you no longer have a regular employee wage coming through. Apart from the state pension, it’s down to you to use your savings, investments and pensions to fund your lifestyle.
In a nutshell, you need to be thinking about:
- the fun stuff, like more holidays or fulfilling a lifelong dream
- the regular stuff, like paying your bills and enjoying your free time
- the important stuff, like keeping ahead of inflation. Plus provisions for any later life needs, such as long-term care.
It sounds difficult to work out, doesn’t it? And to make it even more confusing, there’s important tax considerations around using your pension. Only 25% of your pot is tax-free to withdraw. You pay tax on the rest, in line with current income tax rates.
Start feeling better
You work hard for your money. You make sacrifices along the way. So you deserve to feel excited about retirement. That’s where we come in. Our financial advisers are here to help you plan for a relaxing retirement and to allow you to look forwards with confidence.
- Recommendations personalised to you
- No upfront fees. You only pay a charge if you act on advice
- No pressure to take up our advice – that’s a promise.
March 2023 research by Standard Life underlines just what a difference financial advice could make.
They found people who use a financial adviser expect to retire three years earlier than those who don’t get advice.
That’s because the advice leaves them with the confidence of knowing they have the finances to fund their retirement lifestyle for longer.
Important information
- Investing does mean placing your money at risk. You also need to be willing to commit your money for at least five years.
- The tax treatment of savings, investments and pensions depends on personal circumstances. Tax rules may change in the future.
- Our financial advice service is available if you can invest or reinvest at least £20,000, or can commit to investing at least £500 per month. If you’d like advice on your current investments/pensions, the minimum value required is £50,000 (cash and value reviewed).
- The opinions and information provided in this article are not advice. If you are looking for advice, you should speak to a financial or tax adviser.
Free Pension Health Check for Skipton Members
If you have a Skipton savings account or mortgage, we can help you find out if you’re on track to achieve the retirement you want.