Research has revealed that 27% of affluent individuals in the UK who are still working, believe they will have to put up with a lower standard of living when they are retired, with only 18% believing they will be better off. Following this, according to a survey by the National Employment Savings Trust (NEST), the government-backed pensions provider, only 24% of self-employed people are actively saving into a pension.
What we are seeing here, is a great underestimation of the value of pensions as a way to build wealth, explains James Turner, Director at company formation specialists, Turner Little. Whilst property has been a traditionally popular means of holding wealth, and rising house prices have come to be seen as almost a given, the wise and wealthy should remember that they are not.
It’s important to note that the government offers generous tax reliefs on pensions savings, even for those who have built up significant savings. There is currently a £1m lifetime pension allowance, before higher taxes are incurred, and holders of larger amounts of savings are able to obtain allowance protection.
Ensuring that you put funds aside for your retirement is essential, and there’s no denying that pension-specific wealth management can get a little complex, but it is vital that individuals fully explore their options, not least because there are likely to be significant gains to be had.
Whether you require a straight-forward one-off service, or a more bespoke asset management package tailored to your needs, do get in touch with us. We offer a wealth of integrated services across various sectors.
If you would like to discuss your specific requirements, please contact us and a member of the team will be in touch.