The UK government has liberated us from all that pensions malarkey; pensions freedom means that we can take our money and run. What a fantastic idea, access to all of your pension fund in one fell swoop, no need to choose between QROPS and SIPP, no need to worry about annuity rates or income drawdown so goodbye to all you money grabbing financial advisers out there!
But wait aren’t we missing a trick? Doesn’t freedom usually come with a price and shouldn’t we start acting responsibly rather than just popping down to the Porsche garage and buying the latest model? Perhaps and maybe just perhaps the need for expert financial advice and proper retirement planning will become even more important. We don’t really want to take all of our pension money out of a tax sheltered environment and find ourselves paying 45% tax on the drawdown do we?
Then there’s another conundrum. Should we use a QROPS when my UK pension has suddenly become my latest flexible friend? What can QROPS do that SIPP or Personal Pension can’t? Well you had better speak to an expert financial planner to find out the answer to that; you may be surprised and as we have always said when it comes to retirement planning it is all about YOU, your needs, your objectives and your ambitions.
Is there still a place for annuities? Maybe providers will be forced into manufacturing products that offer real value for money rather than the lottery of having to choose what and when and how long for with the risk that an early death might lead to a nice little windfall for the provider.
The real aim of a pension fund is to make provision for your retirement needs and let you get on and enjoy your life without having to worry about finance. Properly invested and managed a reasonable fund can provide a decent income stream in retirement with maybe something left over for those that you leave behind. What we would suggest is that pension liberation or freedom, call it what you like, actually highlights the need for sound and expert advice about the legislation impacting on your retirement fund and benefits. For some freedom might mean releasing a significant part of a fund and investing in something that will provide greater tax efficiency and more flexibility, for others quite the opposite might apply and a different type of flexible annuity might well be the perfect solution.
Come and talk to us about your retirement planning needs. We would like to start by offering you a FREE private consultation (worth £500) to assess your current financial position and explain how our Spanish tax reduction strategies can help. If you already have a clear understanding of your current situation we can offer a FREE tax planning assessment instead (worth £1,000). Just think you will be getting FREE advice on tax planning for Spanish residents as well as retirement, savings and wealth tax mitigation strategies.
Call tel 951319727 for a meeting with a cross border expert or email firstname.lastname@example.org. Need advice and still based in the UK? We have an FCA approved branch in central London, call for details.