At MyBump2Baby we are proud to be connecting families with trusted financial advisors throughout the UK with our new family protection campaign. Our financial advisers offer advice on pensions, savings and investments and family protection.
What do you picture you retirement to look like? Is it filled with endless holidays? Wining and dining in fancy resturants? Taking your grandchildren out on fun days out? or just enjoying your partners company and doing whatever you both want to do.
One thing that makes retirement enjoyable is having the time and funds to do whatever you want… but how do you get there? Currently, in 2019 a state pension £168.60. Could you jet set and travel the world on £168.60 a week whilst paying your bills? Sadly not!!!
You still have time!!
You still have time to change this and we would love to help you. MyBump2Baby Protection Services as a number of dedicated advisers throuhout the UK ready to help you get started with your pension based on what you can afford, to find you nearest financial adviser fill in this form.
Today we have special guest Andrew Sutcliffe, our advisor from Preston, Lancashire who shares answers to some commonly asked questions and why setting up a pension in your 20’s and 30’s could be the best decision you make.
What age can I access my pension?
Under current regulation you can access a private pension at the age of 55, however there are talks that this could change. Some workplace pensions can differ and have different ages when funds can be accessed depending on the individual scheme rules.
What are the benefits of setting up a pension plan?
There are many benefits to setting up a pension…..
- The funds in a pension grow free of Income Tax and Capital Gains Tax
- The benefit of tax relief on contributions to a pension plan, essentially free money from the government. For example, if you paid £240 into a pension, there would actually be £300 going in to it. That £60 is in the form of tax relief at 20%. You can pay up to £40,000 in to a pension each year and benefit from tax relief. This is called the annual allowance.
- The flexibility when it comes to accessing your pension
- It provides you with an income in retirement.
- The potential for better growth than you would see if you held your funds in a typical savings account for example
- Beneficial for business owners to reduce the amount of corporation tax they pay
There are many more!
What age can I set up a pension from?
You can set up a pension for yourself at the age of 18. However, you can set up a pension for your children to support them in future life. Essentially, you can set up a pension for a child on the day that they are born but there is a maximum you can pay into it each year.
Can I have 2 pension plans?
You can have as many pension as you like, and many people do as a result of changing jobs over the course of their working life. It would be very beneficial to have these reviewed as many providers do not provide advice and it is very prudent to make sure that your funds are in the right place. Having multiple plans can also be challenging from an administrative point of view.
How does a pension plan work?
A pension is an investment with different tax treatment. In simple terms, you ( and potentially your employer) make contributions in to a plan and the funds within it grow over a period of time. When the time comes to access your funds, there are different ways you can do so to provide you with an income in retirement.
Can I move pension from another provider?
Yes you can move providers and can often be beneficial to do so for several reasons, one of which is performance. Many people have past pensions that they are not receiving regular advice on which can be detrimental to the individual. You should also seek professional financial advice before undertaking a pension transfer.
What happens if I die before I can access my pension?
Pensions can be passed to a beneficiary in the event of death.
My partner and I are self-employed and don’t have a pension, do we need one?
Absolutely! With the State Pension Age continuing to increase the need for private provisions as never been higher. If you are self-employed, you don’t have contributions from an employer so therefore you are responsible for funding your own pot. Without a private pension arrangement you would be reliant on state pension income which is currently a little over £160 per week and the age at which you become entitled to this is under review. For me it is 68!
Is a pension plan flexible?
Previously, pensions used to be very inflexible and for this reason they were viewed quite negatively. This is no longer the case and pensions are now very flexible and in my view, are fantastic. You have a variety of options once you are able to access the funds there are different methods to produce an income but getting the right advice at this stage of your life is very important.
You still have time to change this and we would love to help you. MyBump2Baby Protection Services as a number of dedicated financial advisers throughout the UK ready to help you get started with your pension based on what you can afford, to find you nearest advisor fill in this form.