Retirement planning

"There are a number of considerations to take into account in order for you to maintain your income during retirement. These could range from how you go about building up your personal pension savings to how you ultimately use the money."

One of the first factors to consider is selecting the right type of pension for your needs.

You may want to build up funds invested with a pension provider or alternatively you may want to be more pro-active in managing your money and opt for a Self-Invested Personal Pension (SIPP), which allows you to make your own investment decisions.

Whether your goal is to increase the investment returns on your retirement savings or to create a stable income for your retirement, our Private Banking and Advice Managers can help make the best decision for you.”

Accumulating wealth for retirement

When it comes to retirement planning, the first step is to begin saving money for your eventual retirement. The most common way this is done is through investing in a pension scheme. Although there are a number of different pension options, they are all designed with the same basic goal: providing the saver with an income in retirement in the most tax efficient manner.

State pension

The Government provides a state pension at retirement age subject to National Insurance contributions paid over your lifetime.

Workplace pensions

There are two main types of workplace pension scheme:

  • Defined Benefit Pension: Sometimes known as final salary pensions, where an employer provides an employee with an income at retirement. Defined benefit schemes promise to pay a set amount of income to retirees based on how much they earned and how long they worked for the company.
  • Defined Contribution Pension: Sometimes known as money purchase pensions, an employee, the employer, or both, makes regular contributions into a saving scheme. These payments are then invested by the pension provider and once you reach retirement age, you then have a number of options to draw on the funds.

Personal pension, stakeholder pension, self-investment personal pension (SIPP)

  • These are all types of defined contribution schemes. However, they have a number of things in common.
  • Your benefits will depend on the type of scheme, the investment return, the amount of money invested as well as the length of the investment.
  • Benefits are available in different ways, such as buying an annuity or drawing on a pension.
  • These schemes are flexible, transferable and all have tax advantages to incentivise pension savings.
  • Thanks to Government legislation, stakeholder pensions have a number of conditions designed to make them more available. For example, management charges cannot be more than 1.5% of the fund value for the first ten years and are only 1% after that. You can also stop and start payments when you wish or switch providers when it suits you.

What is a Self-Invested Personal Pension (SIPP)?

  • A SIPP gives you more flexibility and control over where you invest your funds. Traditional pension providers only offer limited options. SIPP providers allow savers to invest their money as they see fit, for example in unlisted shares or non- residential property. However, it’s worth noting that SIPPs may require a more hands-on approach.

Important information

  • Past performance is not a guide to future performance. Investors may not receive back the full amount originally invested and the value of investments and the income from them may fall as well as rise. Tax treatment depends on individual circumstances and may be subject to change in the future.

Become a client

Talk to us about how our expert service can help you with your aspirations and goals.

For access to advice from a Private Banking and Advice Manager, you’ll need at least £250,000 in savings, investments and/or personal pensions and/or a sole annual income of at least £250,000.

Before we provide you with any services or products, we will explain and agree with you what advice can be given, the products and services this advice covers and any charges that will apply.