How much thought have you put into planning out your retirement years?

Your employees will automatically be enrolled into a workplace pension scheme. But for directors, partners and sole traders, there’s no mandatory requirement for you to set up your own pension scheme. When it comes to planning your pension, the buck stops with you.

Let’s take a look at some of the main questions you’re likely to have about your retirement planning, with some straightforward answers to get you moving in the right direction.

Why do you need a good personal pension strategy?

In the current economic climate, it’s important to make sure that you have a good pension scheme in place. With a pension behind you, you’ll be able to retire and live out your plans for later life, without having any unnecessary worries about your finances.

So, how should your pension work?

Should you choose a workplace pension or a personal pension plan?

If you don’t have any automatic pension provision, you have two main choices:

What should you consider when choosing a pension plan?

Choosing the personal pension scheme route does give you more options. But there are a few key questions you need to think about before making any decisions on a provider.

For example:

Could your pension be part of your tax planning?

Putting cash into your pension plan makes good financial sense at any point. But pension contributions are also a useful tool when it comes to your tax planning too.

Any money you pay into your personal pension scheme will be liable for tax relief. Because of this, you get the double whammy of saving for your future, while also cutting your overall tax liability for personal income tax.

Do you need an independent financial adviser?

If you need advice to help you choose the right pension scheme, provider and investments, you should speak to an independent financial adviser (IFA).

An accountant can help with your tax planning questions, but only an IFA or a certified pensions specialist can give you professional advice on your pension choice.

Talk to us about finding the best pensions advice

As your accountant, we can help you look at the tax implications of contributing to a pensions scheme.

We can also introduce you to the best IFAs and pensions advisers, so you have solid independent advice on which to base your decisions.

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