To plan effectively for the future, it is essential to establish the current level of pension savings and any potential impact on the lifetime pension allowance. Clients can face heavy penalties, in the form of additional taxation up to 55%, when breaching the lifetime pension allowance.

Alternative planning strategies therefore could be considered e.g. the use of additional ‘tax wrappers’. These provide access to numerous tax reliefs and can offer a source of tax efficient income / capital in retirement. A pension is classified as a ‘tax wrapper’, as is an ISA, plus bonds and collective accounts. Your dedicated Wealth Manager can build a portfolio of tax wrappers to deliver multiple streams of tax efficient income or capital in retirement (or during the accumulation phase).

 

As an introduction to the services available to BAAPS Support Members, a report for only £500 from a Chartered adviser is available upon request. The report includes;

• Personal lifetime allowance calculation
• Pension planning – best practices
• Alternative strategies – tax wrapper insights
• Example cashflow model
• Further insights and investment solutions

The report and associated literature provides a cornerstone for future pension planning and contributions, managing tax issues and a wealth of information for an effective long-term financial plan.