The primary purpose of pensions is, of course, to provide income and capital to savers in retirement, and the UK government has ensured that substantial tax incentives make investing via pensions attractive.
That sounds simple enough, but pension regulations change at a frantic rate and our clients often have to adapt to take advantage, or avoid the pitfalls, of changing rules.
Higher earners in particular need to navigate constantly-changing pension legislation more carefully than ever, while at the same time ensuring their pension ‘pots’ are invested with their long-term objectives taken fully into account, and, where relevant, ‘dovetailing’ with their non-pension portfolios.
And in retirement, those of our clients who rely on pension benefits which are not guaranteed need to understand how much benefit they can take and, equally as important in the new ‘flexible’ world of pension benefits, the practical limits too. With longevity still on the increase, drawing too much in the early years could result in inadequate pensions in later life.
One of our primary roles is to guide our clients through the ‘pension maze’, having regard to income requirements and appetite for risk. We help clients select cost-effective solutions for the long term, taking account of their other assets and their estate planning requirements.