Ball is in your court presentation

The ball is in your court…

Pension Freedoms

Foresight Independent Financial Planning Ltd• Founded in 1998• Based in Hale, Cheshire• Chartered Financial Planning service• The Quantum Programme

The Exploratory Discussion

The Positioning

Meeting

The Reconnaissanc

e Survey

The Alignment Strategy

The Implementatio

n Meeting

The Calibration

Audit

The Edge

The Quantum Programme

The ball is in your court…Ben Mulroney

Pension Freedoms

Agenda

1. Pension Freedoms – what has changed

2. Will I outlive my pension?

3. What are your retirement options

4. Pension taxation

5. What happens to my pension when I die?

6. Final salary pensions

“We have introduced the most fundamental reform to the way people access their pensions in almost a century…”

So what’s changed?

Complete access to your pension from age 55

Will I outlive my pension?

1917 George V

1952 Elizabeth II

2011 Elizabeth II

2035 William V

24

255

9,736

110,000 (estimated)

What are the options?

1. Leave pension invested

Allow your pension fund to continue growing tax-free until retirement

2. Take 25% lump sum, then go into Flexible Access Drawdown

Remain invested for long term growth and manage your income levels

3. Take 25% lump sum and buy an annuity

Although no requirement, for some still a good option. Guarantee against your own longevity.

How will I be taxed?

25%75%

Pension taxation

Income Tax free

What happens to my pension when I die?It’s not all bad news!

Under age 75:

• Entire pension can pass tax-free, as a lump sum or income

Over age 75:

• 45% tax charge is taken as lump sum• If taken as income taxed as income

What about my final salary pension?

• Guaranteed income for life

• Backed by the Pension Protection Fund

• Often inflation linked

• Spousal benefits common

I want these freedoms, should I transfer out of my final salary pension?

• Specialist advice a requirement

• Benefits often highly valuable

• Taking on additional risk

• Can be the right choice for some people

Can we help?

All new queries benefit from an initial meeting held at our expense.

Foresight Independent Financial Planning161 Ashley RoadHaleWA15 9SDTel: 0161 926 9350Email: [email protected]