Planning for Retirement

Will my retirement income be enough to live on comfortably?

Welcome to our latest edition. At the time of writing this issue, Sajid Javid had resigned asChancellor of the Exchequer with less than a month to go until Budget Day. His replacement, Rishi Sunak, will deliver the Budget on 11 March 2020. In our next issue, we’ll look at the key Budget announcements and how they could affect your finances.

Some of the questions our clients almost always ask us are: ‘Will I be able to retire when I want to? Will I run out of money? How can I guarantee the kind of retirement I want?’ Worryingly, it’s been well documented that many Britons aren’t saving enough in their pension for their retirement. On page 08, figures published by HM Revenue & Customs (HMRC) in September 2019 show that the annual average contributions that every individual makes decreased in 2017/18 compared to 2016/17. We look at what you need to consider when saving for retirement.

The end of the 2019/20 tax year is fast approaching, and there are a number of valuable allowances and reliefs that will be lost if they are not used before the deadline. These opportunities include, but are not limited to, four important areas of tax planning that should be considered. On page 03, we’ve summarised these allowances and suggest that if appropriate to your particular situation, these areas should be reviewed before 5 April 2020.

Are you worried about leaving an inheritance to your loved ones and then having them pay tax on your legacy? No one likes to think about a time when they won’t be here, but unfortunately the reality is that some people aren’t prepared financially.

Estates that pass on to a spouse, registered civil partner or charities are exempt from Inheritance Tax (IHT), even if the value of such estates is higher than the threshold limits. Estates that pass on to anyone else, including siblings, children and grandchildren, attract IHT. Turn to page 07.

A full list of the articles featured in this issue appears opposite.

Contents

  • Page 03 TOP 4 TIPS FOR GOOD TAX PLANNING What should I consider before the end of this tax year?
  • Page 04 TIME TO GIVE YOUR PENSION POT A BOOST? Planning ahead for the financial future you want
  • Page 06 PORTFOLIO DIVERSIFICATION Don’t put all your eggs in one basket
  • Page 07 PRESERVING YOUR LEGACY How to keep your wealth in the family
  • Page 08 PLANNING FOR TOMORROW Will my retirement income be enough to live on comfortably?
  • Page 10 DIVORCEES RISK LOSING OUT ON PENSIONS Dividing this asset is of vital importance to avoid pension poverty
  • Page 11 RETIREMENT OPTIONS £19m released each day since pension freedoms launch
  • Page 12 2019/20 ISA ALLOWANCE – USE IT OR LOSE IT Maximise your wealth creation – don’t miss the deadline

An understanding of your financial needs and aspirations

We hope you enjoy this issue. Whether you’re saving for the future, enjoying your retirement or funding care in later life, if you have any further requirements, please contact us – we look forward to hearing from you.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE. THE VALUE OF INVESTMENTS MAY GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.

smartmoney mar april 2020 planning for retirement
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