Check out Ben Smalley’s expert advice for readers of the July edition of Dronfield Eye magazine – out now. He explains how the Pension Advice Allowance could help you secure the retirement you envisioned.
We are evidence-based investors. But what exactly does that mean?
The Belmayne approach to financial planning focuses on the things we can control, such as risk, fees and taxation. It follows the principles of academic research and we use all the allowances available to improve your long-term wealth. One allowance I believe is underused relates to pension advice.
The Pension Advice Allowance enables pension scheme members to access £500 per annum, tax free, for a maximum of three years. It is intended to help anyone in a defined contribution scheme, or hybrid, pay for regulated advice. It can be invaluable if you are still employed by your scheme sponsor, but want to know you are on the right track for retirement.
Everyone has a particular set of circumstances that drives their financial planning decisions. A defined contribution scheme, however, usually has a default investment strategy, especially if it was set up by a sponsoring employer. In my experience, the approach taken will favour the provider’s profitability, rather than individual members’ objectives.
By engaging an independent, regulated financial adviser for a couple of years prior to retirement, you can ensure the funds you invest in these schemes are consistent with your attitude to risk, deliver value for the fees incurred and will make your vision of life after work a reality.
There is no restriction on the age at which you can utilise the Pension Advice Allowance, but you do need to ask your scheme administrator if they can facilitate the payment.
It is also important to note this allowance is not government sponsored. It is paid for by the scheme members’ pension funds, so it is imperative to do some groundwork on the adviser you choose, to ensure they are the best fit for you.
We offer initial consultations, at our cost, to explore your financial situation and existing provisions for retirement. Given the current climate, we are using whatever communication method works to make you feel comfortable and safe in our discussions. To find out more, telephone (01246) 298181.