Independent Pension Planning Advice
For many of us retirement can seem like a distant dream so we delay our pension planning and instead prioritise other financial commitments such as a mortgage or a new car. However the sooner you begin to save for retirement the better.
Monitor your retirement funds in real-time.
Bespoke goal setting for your retirement.
Processes explained at every stage.
While we should all receive a basic rate state pension this alone is often not enough to provide a comfortable level of income in retirement.
The State Pension is often complemented with a company pension, workplace pension, private personal pension or other investments. There are various options for your retirement planning available, which can make it incredibly difficult to select the correct product for your circumstances. This is where a financial adviser can help.
Our pension advisers will be able to help clarify and simplify the whole pension procedure; undertaking a financial audit of your existing pensions, analysing how your policies are performing and identifying if there are any policies that could be moved to provide you with a greater return when you retire.
Ultimately our pension advisers work to ensure that your quality of life doesn’t have to change when you retire. At KDW we specialise in pension planning across the following areas:
- Workplace Pensions (Auto-Enrolment)
- Personal Pensions
- Stakeholder Pensions
- Small Self-Administered Schemes (SSAS)
- Self-Invested Personal Pensions (SIPP)
- Executive Pension Plans
- Occupational Pensions and Final Salary Analysis
Your Questions Answered
Here we have answered some of the most frequently asked questions we receive regarding pensions.
How is a pension different to regular savings?
A pension is a long term saving scheme which allows you to save money for your retirement. By saving a percentage of your income whilst you are working you will be able to still receive an income when you decide to reduce your working hours or stop working altogether.
It differs to regular saving schemes, such as an ISA, as it receives favourable tax treatment.
Pension policy is regularly updated by the government which makes it a fairly complicated area. There are many different types of pension schemes from a company pension to a state pension to a SIPP (Self Invested Personal Pension).
If I have a state pension should I be saving elsewhere?
Unfortunately the state pension is unlikely to provide you with a sufficient income when you retire so you should consider other types of pensions. Another point to consider is the future of the state pension is currently unclear; therefore it is vital to have another source of retirement income.
When should I start saving into a pension?
While the earlier you start saving the bigger your pension pot is going to be, you should never be put off from starting to save for retirement. If you do begin saving for retirement later in life you may decide to make bigger contributions to catch up on any time you missed.
It is also important to remember that saving for retirement is a tax efficient method of saving.
What are the relevant tax breaks?
There are three key tax breaks in relation to pensions:
- Tax Relief – any contribution made to a pension attracts tax relief at the individual’s highest marginal rate.
- Tax Free Growth – unlike savings held in a regular investment which are subject to income tax and capital gains tax any investment that is held in a pension is able to grow tax free.
- Tax Free Cash – from the age of 55 an individual is able to withdraw up to 25% of the total accumulated funds as a tax free ‘Pension Commencement Lump Sum’. The remaining funds can either stay invested, withdrawn as a lump sum or used to provide an annuity
Why use KDW for your Workplace Pension?
We help companies to comply with auto enrolment by assisting them with both the set up and the management of a workplace pension.
Auto enrolment is the pension legislation which requires employers to provide a workplace pension scheme and pay employee contributions. Every company is allocated a staging date; which is the date that they need to have entered their employees onto a workplace pension scheme by.
Employers face multiple duties when setting up a workplace pension scheme, including providing a qualifying pension scheme and ensuring that mandatory communications are sent out to employees.
Failure to set up a workplace pension scheme and comply with the required duties by the allocated staging date can see businesses face fines from £50 per day.
Here at KDW, our team of advisers are experienced in setting up auto enrolment schemes for small, medium and large businesses as well as accountants and payroll providers.
We offer a free initial consultation, which gives us the opportunity to learn about your company, its people and processes and for you to find more about us and how we work.
How Can KDW help with your workplace pension? We approach auto enrolment in three simple steps:
Pension Scheme Advice
After undertaking a thorough review of the clients’ business, its people and existing payroll we help to select a compliant pension scheme. A scheme that is economical and that will effectively meet the requirements of the business and its employees.
We are able to offer advice on all aspects of auto enrolment, including contribution levels and eligibility criteria.
Set-up and Implementation
We work with our clients assisting with the implementation of the chosen scheme, providing advice and support throughout the process. Also we can provide personalised employee communications, so that our clients’ employees are fully aware of the forthcoming changes.
Once the chosen auto enrolment scheme is in place, we continue to provide the employer with support; ensuring that they remain compliant with auto enrolment legislation. We also assist them with providing the Pension Regulator with the certification of the workplace pension scheme.
As Independent Financial Planners we are fully qualified to advise our clients and their employees on their personal pension and assist with individual retirement planning.
Workplace Pensions for Small to Medium Businesses
The Smart Approach to Auto Enrolment with KDW
Small to medium businesses
It is important to seek advice on auto enrolment well in advance of your allocated staging date. Even if there is an existing pension schemein place it will not necessarily comply with the additional duties and responsibilities which are required for auto enrolment.
KDW can help your business manage the set up and implementation of an auto enrolment scheme that is right for your business.
Accountants and Payroll Providers
We understand that it can be stressful and time consuming setting up auto enrolment schemes for numerous clients, which is why we offer a no-nonsense service, which will save time and money for both you and your clients.
Our auto enrolment scheme allows accountants and payroll providers to offer an efficient and cost effective service to their clients.
Download our Auto-Enrolment factsheet here.
Make an enquiry
For more information on our financial planning services, please use the short form below and one of our representatives will be in touch ASAP.