- exeter tel: 01392 258553
- exmouth tel: 01395 279521
Who will provide for you when you retire?
- The Government?
- Your Business?
The State Old Age Pension is diminishing in real value and is being paid later in life. It is now less than 20% of the National Average Wage compared to almost 50% when is was introduced in the 1940’s. What will it be worth when you retire and how old will you have to be before you are entitled to it?
How much is a business worth? Is goodwill worth as much as it used to be? Can you rely on someone wanting to pay sufficient for your business for you to be able to retire comfortably on the proceeds?
The person you can rely on most to provide for your retirement is YOU – after all you’re the only one with a vested interest!
Pension provision is a complex area which requires careful planning and regular reviews. There are many ways to provide for your retirement beyond just a simple pension policy, but which will be the right way for you will be determined by various factors such as maximizing tax efficiency, maintaining flexibility and meeting your overall risk profile.
New pension regulations introduced in April 2006 now allow greater flexibility in what contributions can be made to pensions by individuals and companies, and also in how the benefits can be taken as you approach retirement to compliment continued income from your business.
If you are in business, one of the things you need to consider is your exit strategy. Will you withdraw from the business, leaving it for the next generation, or will you hope to sell the business? If you intend to hand the business over, do you have a workable succession plan? If you intend to sell, how will you value the business, find a suitable buyer, etc.? Are you aware of all the tax implications of the timing of disposals?
Our Financial Services company – TJ Financial Services – can also help you to develop the right strategy using a range of investments. We work together as a team to ensure that all aspects of the retirement process are handled in the way that suits you best.
contact us today to discuss how we can help you plan effectively for your retirement.