Independent Financial Life Planners Bishop's Stortford: Should you cash in your pension in 2015?

Monday, 1 December 2014

Should you cash in your pension in 2015?

New pension rules as many of us are now aware will allow you to cash in your retirement pots from April next year if you are over 55 but understanding what to do with the money is tricky. Enable's IFA’s in Bishop’s Stortford are here to help investors consider whether keeping pensions invested might actually result in higher returns.

So if you are 55 and have a pension you will soon be able to take out your whole defined contribution pension but remember income tax will be payable at your marginal rate on any withdrawals in excess of the 25pc tax-free cash sum allowed. Withdrawing a large sum and having that added to any other income that you receive in the tax year could really push up your tax bill so understandably many will want to consider keeping their pensions invested after retirement to avoid any sudden big tax bills.

If you decide to keep your pension invested, you need to ensure a good mix of investments reflecting; safety, inflation-proofing and growth. Asset allocation is key when it comes to building a balanced pension portfolio. Diversifying your investments between the main asset classes – cash, fixed interest securities, commercial property and equities spreads your assets and help reduces the overall level of this risk. Of course delaying taking your pension itself is not without risk, the stock market will inevitably continue to move up and down and can have an effect on your retirement income but Enable's IFA’s are here to offer retirement planning advice to help you find the right order of risk or security for you.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

No comments:

Post a Comment

IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.