Pensions

The most important and tax efficient tool for most individuals retirement is their pension. At HP Asset Management we will advise you on not only how to get the most out of your pension but also how to build it up sufficiently in order to fund the lifestyle you want in your retirement.

The pension products we provide all qualify as ‘registered pension schemes’ – that means they benefit from certain tax advantages that aren’t available to other kinds of investment.

  • You can transform your taxable income into highly tax-efficient long-term savings.
  • Usually, you can take up to 25% of your fund as a tax-free sum when you start taking benefits.
  • Contributing to your private pension can allow you to receive income tax relief from the HMRC and in some cases result in an annual tax rebate.

The pension products we recommend accept regular contributions, single contributions and transfer payments from other UK-registered pension schemes or overseas schemes approved by us.

Old Pension Schemes

A common mistake made by many individuals is forgetting about a pension scheme when they leave an employer, this often happens more than once during ones career. Neglecting an old pensions could hinder your pension because of two main reasons, monitoring and investment approach.

Monitoring:

A pension is a tax efficient savings pot for retirement, the more money invested in the pot before an individual reaches the age of drawdown (when they can start to use the pension for income) the more money they have available to supplement their lifestyle in retirement. Without monitoring the value and performance of the investments the overall progress and efficiency of the pension pot cannot be tracked, this is taking an unnecessary risk with the level of retirement income in the pension.

Investment Approach:

From a commercial stand point companies simply do not have the time or resources to tailor the occupational pension to each individual member of staff, this means that it’s likely the investments within the pension remain the same throughout, this also corresponds with an old private pension, most individuals simply forget to monitor just don’t have the time to assess their investments in the pension. The global investment market and economic background is unlikely to remain in the same state throughout one’s life, this means that one investment will not be appropriate or effective throughout this period of time and is likely to require altering in order to try and consistently enhance performance.

An individual should take less investment risk the closer they get to retirement in order to protect their level of wealth for retirement and inheritance purposes, this is known as ‘Lifestyling’, there is less chance of this being achieved if old pensions are not being monitored or analysed on a regular basis.

At HP Asset Management we provide regular statements for all of our investment wrappers, a semi-annual Investment Review and an Annual Review to ensure you stay on track with the financial strategy we have tailored to you. You can also log-in to your HP Asset Management online platform to check on the investments yourself at any-time.

Consolidation Service:

HP Asset Management provides a free initial, no-obligation analysis and review service in order to assess the following:

  • The investments within each pension
  • A full asset allocation and performance breakdown
  • Level and appropriateness of risk
  • Transfer Value

This information will be used to assess whether or not it’s worth consolidating the pensions into one scheme at HP Asset Management. Consolidating previous pensions into one pot at HP Asset Management will ensure:

  • Consistent monitoring
  • Risk assessment
  • Re-allocation of investments (if required)
  • Assessment of pension value to ensure desired level of income in retirement can be met.
  • Retirement planning strategy

To find out more about pensions or the benefits of our pension consolidation service download our brochure or please arrange a call with an adviser.