Pensions |

Although people are living longer, most are not saving enough for retirement

At tba Wealth Management we encourage all our clients to keep a long term focus on their retirement plans and fund their pensions accordingly.

Understanding Pensions

A pension is simply a method of saving for retirement. What makes it different from other methods of saving is the tax advantages offered by the Government to encourage individuals and companies to make provision for retirement.

Why Pensions Matter

Planning for retirement has never been more crucial. Demographic trends in the UK show people are living longer while the working population is reducing. This puts an ever-increasing strain on the State Pension and an ever-increasing importance on private pension provision.

Types of Pensions

There are several types of pensions, each with its own set of rules and benefits:

Defined Contribution Pensions

Can be set up by employers or individuals and they can both pay into the pot. What you eventually get depends on how much has been paid in and how the underlying investments have performed.

Defined Benefit Pensions

Set up by employers. You pay into a larger overall fund and what you get depends on your final salary (or an average of salary over time). Investment performance has no impact on your benefit level.

State Pensions

Provided by the Government, when you reach State Pension Age. What you receive depends on your National Insurance contribution record.

Maximising Your Pension

Having a pension is just the first step in planning for retirement but here are some tips to maximise your pension benefits:

Start saving early
Contribute regularly
Claim all available tax relief
Consider additional voluntary contributions

What are my options at retirement?

There are a number of options available once you reach the minimum pension age. Typical ones include flexi-access drawdown, lifetime annuities and Uncrystallised Funds Pension Lump Sums (UFPLS). What option(s) are right for you will depend on your own unique personal circumstances. Contact us today to find out how we can help plan your retirement income needs.

Contact us today for a free, no obligation initial consultation

For those of us in finance or with years of work experience, the importance of a pension might seem obvious. However, let's not forget that many young professionals, recent graduates, and school leavers might not have this knowledge. Help us spread the word to our younger audience who may be uncertain about their finances, especially when it comes to pensions.

Are you a young professional just starting out and feeling a bit lost when it comes to financial planning? 🤔

Don't worry, we've got you covered! Our latest video breaks down the basics of pensions in a way that's super easy to understand.

🔹 What is a pension? 🔹 Why should you care about it now? 🔹 How can it benefit your future?

Whether you're just entering the workforce or looking to get a head start on your financial future, this video is for you! 📈💼

Warning
The pension options listed above are not exhaustive and the specific options available to you will depend upon individual circumstances.
This provides basic information surrounding some of the pension options available to members of a registered pension scheme in the UK. It should not be considered financial advice. For financial advice, you should contact one of our financial advisors here.
The information on this page is based on our understanding of current UK legislation. Levels of taxation will depend upon individual circumstances and may be subject to change in the future.

Pension top tricks and tips

While the big job for pension planning is to simply pay into it, there are still plenty of other things to be aware of when it comes to your pension. Don't get stuck in pension autopilot!
For example, do you know what happens to your pension when you die? It’s not just about who will get...

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