Should you consider estate planning and gifting for future generations.

As we age or accumulate more wealth, protecting and preserving our assets for future generations becomes increasingly essential. This process, known as Inheritance Tax (IHT) planning, estate planning or intergenerational wealth planning, involves strategically managing your estate to minimise tax liabilities and ensure that your wealth is passed down to your loved ones in the most tax-efficient manner possible.

Effective planning can significantly impact the financial wellbeing of your heirs, making it crucial to consider various strategies and tools available for safeguarding your estate.

One common question we receive from clients is whether to gift assets during their lifetime or wait until they have passed away. The answer is more complex and heavily depends on your personal and financial circumstances and objectives. Gifting can provide immediate support to family members and potentially reduce your estate’s size, lowering the IHT burden.

However, careful consideration must be given to the gifts’ timing, amount and recipients to ensure that they align with your long-term goals and comply with tax regulations. Understanding these nuances is essential in making informed decisions that will benefit you and your loved ones.

UNDERSTANDING INHERITANCE TAX

When you pass away, IHT is potentially payable to HM Revenue & Customs (HMRC). The amount due depends on the estate’s value minus any debts and after all available thresholds have been used. These thresholds are the nil rate band (NRB) and the residence nil rate band (RNRB). At a high level, the NRB is £325,000, and the RNRB is £175,000, the latter of which is only available if you leave your home to a direct descendant. The standard rate of IHT due to HMRC on amounts over these thresholds is 40%. This reduces to 36% if at least 10% of your net estate is left to charity.

WHY DO WE GIFT?

We gift for two common reasons: We want to help our family and loved ones now, when they need it, and whilst we can see them enjoy it, as opposed to when we have passed away. This is often called a ‘living inheritance’. Additionally, we may have a large estate and wish to reduce its value so that our beneficiaries pay less or no IHT when we pass away.

HOW MUCH CAN YOU GIFT?

In short, you can gift away however much you want to whoever you like and whenever you like. If these gifts fall within the ‘annual gift allowances’ or are made from your regular surplus income, they automatically fall outside your estate for IHT tax purposes. Otherwise, you must survive seven years after making the gift before the gift is excluded from IHT tax calculations.

THE IMPACT OF SEQUENCING GIFTS

The sequencing of gifts can significantly impact the wealth you want to pass on. In addition to the seven-year rule, there is the less well-known 14-year rule. Giving a gift outright to an individual and/or Absolute/Bare Trust in excess of the annual allowances is known as making ‘Potentially Exempt Transfers’ or PETs.

POTENTIALLY EXEMPT TRANSFERS AND THEIR USES

For example, a common reason for making a PET might be to help a child onto the property ladder. To ensure the gift is outside of your estate for IHT tax purposes, you need to survive seven years from when the gift is made. If the PET is more than the NRB (£325,000), there is gradual tapering on the excess once you have survived for over 3 years. The longer you survive after making the gift (between 3 and 7 years), the greater the tapering.

CHARGEABLE LIFETIME TRANSFERS

Should you settle any money into a relevant property trust, such as a Discretionary Trust, these gifts are known as ‘Chargeable Lifetime Transfers’ or CLTs. An example of such a settlement might be grandparents wanting to pass money down to their grandchildren. A common reason for this may be that their children already have a large estate, so if they were to inherit any more, it would be unhelpful for their IHT position.

COMPLICATIONS IN GIFT ORDER

Complications may arise when an individual has passed away and has made both PETs and CLTs. This is because the order of these gifts can result in bringing 14 years’ worth of gifts into the IHT calculation. When considering which gifts are liable to IHT, the gifts are placed in the order they were made, starting with the oldest and moving towards the date of death.

HMRC RULES ON FAILED PETS

HMRC rules are such that any CLTs made in the seven years before any ‘failed PETs’ must also be brought into account. If an individual makes a PET and dies within 6 years and 11 months, the PET fails. From the ‘failed PET’ date, HMRC will look back a further seven years and include any CLTs in their calculation to determine the IHT due on the PET.

ANNUAL GIFTING ALLOWANCES

Under current legislation, everyone can gift away £3,000 per year. This is called your ‘annual exemption’. Any unused allowance can be carried forward to the following tax year; however, it cannot be carried over again. There is also a wedding allowance of varying amounts depending on the relation, which must be made before the wedding, and the wedding must happen: £5,000 to a child, £2,500 to a grandchild, £1,000 to a relative or friend. Wedding gifts can be combined in the same year with the annual exemption.

SMALL GIFTS ALLOWANCE

You can also make gifts of up to £250 to as many different people as you like, as long as the person has received more than £250 from you that tax year.

 DO YOU REQUIRE INFORMATION OR  PERSONALISED ADVICE ON GIFTING AND INHERITANCE TAX PLANNING?

For those seeking further information or personalised advice on gifting and Inheritance Tax planning, please do not hesitate to contact us for expert guidance tailored to your specific circumstances.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL, OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

THE FINANCIAL CONDUCT AUTHORITY DOESN’T REGULATE TRUST PLANNING AND MOST FORMS OF INHERITANCE TAX (IHT) PLANNING. SOME IHT PLANNING SOLUTIONS PUT YOUR MONEY AT RISK, AND YOU MAY GET BACK LESS THAN YOU INVESTED. IHT THRESHOLDS DEPEND ON INDIVIDUAL CIRCUMSTANCES AND THE LAW. TAX AND IHT RULES MAY CHANGE IN THE FUTURE.

How retirees are impacting their financial future by accessing pension pots too soon.

More than three-quarters (78%) of retirees have already dipped into their pension pots by the time they retire, according to recent data[1]. Of these, more than half (52%) withdraw funds five years before their Selected Retirement Age (SRA), with 21% opting to start taking out funds nine to ten years before they retire.

This trend highlights a significant shift in retirement planning behaviours, where immediate financial needs or desires often outweigh the long term benefits of leaving pension funds untouched. Factors such as unexpected medical expenses, the desire to pay off debts or the need for additional income to support a particular lifestyle can drive retirees to access their pension savings earlier than planned.

CONSIDER THE TIMING OF PENSION WITHDRAWALS

The implications of early withdrawals are multi-faceted and can significantly impact retirees’ financial security. By withdrawing funds early retirees potentially miss out on the compound growth that could have been achieved if the money had remained invested. This can result in a smaller pension pot during the later years of retirement when the need for financial stability is often greater.

Furthermore, early withdrawals may indicate insufficient financial planning or awareness about the benefits of delaying pension access. As people live longer and retirement periods extend, it becomes increasingly important for individuals to carefully consider the timing of their pension withdrawals to ensure they stay within their savings.

FINANCIAL IMPACT OF EARLY WITHDRAWALS

The data revealed that the average amount an individual withdraws by age 65 is £47,000. Financial modelling shows how much that £47,000 could grow if invested for longer. If the money stayed invested from age 55 (when the member would have first been ale to take the benefits) for an additional five years, they would have £13,925 more on average by the time they reach 60.

That figure rises to £24,661 if it were to stay invested for ten years to age 65 – a rise of more than 50% and to more than £38,000 if invested to age 70. A separate modelling exercise was conducted assuming that individuals claimed the maximum tax-free cash available at age 55, which currently stands at 25%, equivalent to £11,750.

MAXIMISING PENSION BENEFITS

If the same modelling were run with the remaining £32,250 left in individuals’ pots after taking the tax-free cash, savers would, on average, be £10,441 better off after five years and £18,496 after ten years if they decided to stay invested. These figures highlight the significant financial benefits of delaying withdrawals and allowing pension funds to grow.

The data further shows that most people withdraw money from their workplace pension before retirement age. While early withdrawals are often unavoidable, draining a pension pot too soon can carry substantial risks, which providers and retirees should be aware of and take steps to guard against where possible.

NAVIGATING A CHANGING PENSIONS LANDSCAPE

The pension landscape is ever-changing. People are living longer, which means pensions must cover longer retirements. Additionally, more individuals are choosing to phase into retirement with part-time work, changing how and when they access their pension funds.

Early withdrawals can severely impact the long-term financial stability of retirees. Therefore, individuals must seek professional financial advice to make informed decisions about their pension pots.

PLANNING FOR A SECURE RETIREMENT

Retirees should also consider other sources of income and investments that can support them during their retirement years. Diversifying income streams can provide a safety net and reduce the need to dip into pension funds prematurely.

Proper financial planning ensures that retirees can maintain their desired lifestyle without compromising their financial security. By understanding the implications of early withdrawals and exploring alternatives, retirees can make decisions that will benefit them in the long run.

WANT TO MAKE INFORMED DECISIONS THAT WILL HELP YOU MAXIMISE YOUR PENSION BENEFITS?
If you are approaching retirement or have already started considering your pension options, it’s crucial to understand the impact of early withdrawals on your long-term financial security. Contact us today
to explore your options and create a personalised retirement plan that aligns with your goals. Secure your financial future now – don’t wait until it’s too late!

Source data

[1] The statistics cited were the result of an analysis by Scottish Widows on 232,654 different retirement claim transactions between 2019 and 2023, which has been used from different sources to give a single view.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.

Your path to confidence and a secure future.

Divorce can be bewildering, especially when managing your finances. However, understanding your options can make the process more manageable. Financial concerns may not be your first thought during a marital breakdown. Still, given the significant impact divorce can have on your financial future, it’s crucial to take proactive steps to safeguard your financial security.

Often, decisions are made in emotionally charged settings, and the financial ramifications may not become apparent until much later. Involving professional financial advisers alongside your solicitor can be invaluable. People frequently consult financial advisers after a divorce settlement is agreed upon, but engaging a financial planner early on can help shape the settlement more effectively.

Role of professional advice

Your solicitor will handle the legal aspects of your divorce, while your professional financial adviser will focus on the long-term financial implications of your decisions. They will guide you throughout the process and beyond, helping you understand your financial situation thoroughly. They can also help to relieve the burden of decision-making and administration by assisting with paperwork and meeting deadlines.

Planning for your financial future post- divorce is imperative. Your needs and circumstances will likely change, making budgeting a necessity. Obtaining a copy of your credit report is a good starting point, particularly if you need a new mortgage.

Tax implications of divorce

Divorce is a complex process that involves the careful division of assets to meet the needs of both parties while minimising the tax impact. A vital aspect of a divorce settlement is understanding how it will influence your tax position, including Income and Capital Gains Tax. During a specific window, spousal exemption applies, and assets can be transferred on a no-loss, no-gain basis, which can help mitigate some tax liabilities. However, once this period lapses, you may be liable for Capital Gains Tax on certain assets.

Navigating these intricacies can be daunting, but this is where expert financial advice becomes invaluable to guide you through the process, helping you attain a favourable outcome while considering all relevant tax implications.

After the divorce, the familiar landscape of your financial life may be significantly altered, leading to numerous questions about your future. One of the most pressing concerns is whether you will have enough money to sustain your lifestyle. While this is challenging, your professional financial planner will provide the clarity you need through cashflow modelling.

This sophisticated technique projects your current financial status (income, expenditure, assets and liabilities), helping identify potential shortfalls. By analysing your monetary inflows and outflows over time, cashflow modelling offers a clearer picture of your financial future, empowering you to make informed decisions and plan confidently.

Your financial adviser will ensure you have the support and guidance needed to navigate this transitional period. They will help you understand your financial standing, set realistic goals and develop strategies to achieve them. Whether planning for immediate needs or securing long-term financial stability, their expertise is crucial in helping you move forward with confidence and peace of mind.

Pensions and divorce

Pensions often represent one of the most significant financial assets in a divorce settlement, making it crucial to address them effectively.

Seeking professional financial advice early on is essential to navigate the complexities and ensure a fair outcome. There are three primary ways to handle pensions during a divorce: pension sharing orders, pension offsetting, and pension attachment or earmarking.

A pension-sharing order is one of the most straightforward methods, as it divides the pension assets between the divorcing couple, providing a clean break. This means that each party receives their share of the pension pot, which they can manage independently. The advantage of a pension-sharing order is its clarity and finality, allowing both individuals to move forward without future financial entanglements related to the pension. However, the process can be complex and may involve significant legal and administrative work to implement the order correctly.

Pension offsetting, on the other hand, involves balancing the value of the pension against other assets within the marital estate. For instance, one spouse may retain the entire pension, while the other might receive an equivalent value in property or other assets. While this method can be flexible and cater to the unique needs of the divorcing parties, achieving a fair split can be challenging. Valuing pension benefits against tangible assets like real estate requires careful consideration and expert valuation to ensure neither party is disadvantaged.

Pension attachment or earmarking directs a portion of the pension benefits to the ex-spouse when the pension pays out. Unlike pension sharing, this method does not provide a clean break, as the pension remains in the original holder’s name. The ex-spouse receives the agreed portion of the benefits upon retirement.

While pension attachment can be more straightforward to arrange and implement, it ties the financial futures of divorced individuals together, potentially leading to complications. Additionally, the ex-spouse depends on the pension holder’s decisions about retirement timing and fund management, which may not always align with their interests.

Understanding these options and their implications is critical in making informed decisions during a divorce. A professional financial adviser can provide invaluable assistance, offering tailored advice and helping you navigate the legal and financial intricacies involved. They can evaluate each method’s benefits and drawbacks based on your specific circumstances, ensuring you achieve a fair and manageable settlement.

Addressing pensions effectively in a divorce requires careful planning, expert guidance and a thorough understanding of available options. By engaging a financial adviser early in the process, you can ensure that your long-term financial security is safeguarded, allowing you to move forward with confidence and peace of mind.

READY TO TAKE THE FIRST STEP TOWARDS SECURING YOUR FINANCIAL FUTURE TODAY?

Divorce can be a complex and uncertain period, but you don’t have to navigate it alone. We’re here to provide you with tailored advice that meets your unique circumstances, ensuring you make informed decisions every step of the way. Contact us now for further guidance and support, and let us help you build a stable and prosperous future.

THIS GUIDE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

DIVORCE SETTLEMENTS ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

CASHFLOW MODELLING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.

THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.

Helping you feel more prepared for this stage of your life.

If you are in your 40s or 50s, you have likely contributed to a pension for quite some time. Over the years, you may have accumulated multiple employer workplace pensions. However, when did you last thoroughly examine your pension and retirement strategy?

Having a documented retirement plan can help you feel more prepared for this stage of your life, ensuring you have a sufficient income when you stop working. Here, we explore several factors to consider when reviewing your savings. If you don’t yet have a plan, in this article, we consider a helpful starting point.

REVISIT YOUR RETIREMENT PLAN

It’s always a good idea to reassess your plan to ensure you’re on track to achieve the retirement income and lifestyle you desire. Priorities and circumstances can change, necessitating adjustments to your plan.

BEGIN BY ASKING YOURSELF THESE THREE KEY QUESTIONS:

HOW WOULD YOU LIKE TO SPEND YOUR RETIREMENT?

Consider what you’d like to do during your retirement to help determine how much money you’ll need. Whether it’s holidaying, investing more time in hobbies or starting a new business venture, it’s crucial to account for everyday expenses such as rent or mortgage payments, household bills and food shopping. Additionally, it’s wise to set aside savings for potential medical needs or home care as you age.

When planning your expenses, don’t forget to factor in inflation. Prices tend to increase over time, so having an extra financial cushion can be beneficial.

WHEN WOULD YOU LIKE TO RETIRE, AND FOR HOW LONG?

Is the age you’d like to retire still the same, or has it changed? With life expectancy increasing, you’ll need to consider how much money you’ll need throughout your retirement. Dividing the total figure into an annual salary, followed by a monthly income, will help you determine if your savings are sufficient.

Consider how you’ll access your retirement income. Different options have various terms and conditions that affect your take-home pay.

DEBT REPAYMENTS BEFORE RETIREMENT

If possible, set goals to pay off any debts before you retire. Clearing debts can provide peace of mind, as it’s one less expense to worry about.

CHECK YOUR PENSION CONTRIBUTIONS

Your retirement fund could include workplace pensions, personal pensions, Individual Savings Accounts (ISAs), investments and the State Pension. When reviewing your pension pot, check the amount and track performance, and take action if necessary.

CONSIDER THE FOLLOWING WHEN REVIEWING YOUR PENSION POT:

• Review your workplace pension contributions. Can you afford to increase them, even slightly? Even small annual increases can make a significant difference over time.
• Check your employer’s contributions. Many employers offer benefits such as matching increases in your contributions to your workplace pension.
• Keep track of all your pension pots to avoid forgetting about them. Consider whether you want to keep working part-time or flexible hours, which will give you more time to improve your savings.
• Remember, the value of investments can fall as well as rise, and there are no guarantees.

When you start drawing benefits, the value of your pension pot might be less than the total contributions made.

THE STATE PENSION AS AN INCOME SOURCE

The State Pension alone is unlikely to support your retirement. If you’re eligible, the amount you receive will depend on your National Insurance contribution record. You can check your State Pension forecast on the government’s website to see how much you could receive when you can claim it and if you can improve it.

UNDERSTAND YOUR RETIREMENT INCOME OPTIONS

From age 55 (57 from April 2028), you can access some or all of your pension beneits. Personal circumstances, lifestyle and health will influence your right income option. Some contracts restrict your options, and there are tax implications to consider.

CONTROL OVER YOUR RELATIONSHIP WITH MONEY

Planning for retirement is a step towards improving your financial wellbeing. It’s about how you feel regarding control over your financial future and your relationship with money. Focus on what makes your life enjoyable and meaningful now and in retirement.

 WANT TO IMPROVE  YOUR FINANCIAL WELLBEING?

Please get in touch with us if you require further information or assistance in planning your retirement. We’re here to help you navigate your financial future with confidence.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

Making the right decisions today could boost your retirement pot and make the future a whole lot better.

When considering retirement planning, pension savings are a crucial component of your financial strategy and essential for a comfortable retirement. Securing the right professional advice is critical, as decisions made at this stage will significantly impact you and your family.

Saving in a pension is one of the most tax- efficient ways to invest for your future. However, to many people, it’s understandable that pension rules seem like a minefield – and the most recent changes in pension legislation have made this already complex topic even more challenging. So what do the latest changes mean?

KEY PENSION QUESTIONS TO CONSIDER

How many different pension plans do you have? Do you have the details for each plan? Do you know how much is saved in each one? How well are they performing? What are the charges and levels of risk for each plan? How much income will you need in retirement to live life the way you want? Are your pension funds and other assets enough to provide that income?

REVIEWING YOUR PENSION PLANS

If you are unsure of the answers to some of these questions, this could be an ideal time to review your pension and retirement plans and make any changes to provide the future you want.

Recent changes in pension legislation may offer a beneficial opportunity.

You may already know that there have been two key changes to pension rules recently. This has created opportunities to increase pension savings for some people and take stock of what they already have.

REMOVAL OF THE LIFETIME ALLOWANCE TAX CHARGE

Firstly, the Lifetime Allowance (LTA) tax charge has been removed as of 6 April 2023.

Previously, anyone withdrawing benefits from their pension fund above the LTA of £1,073,100 (or the applicable fixed, enhanced, individual or primary protection amount) was subject to a tax charge. This charge could be either 55% or 25%, depending on whether they were taking a lump sum or income.

The Spring Budget in March 2023 reduced this charge to 0%. More recently, the Autumn Statement 2023 conirmed that the LTA would be removed entirely from 6 April 2024, which has now taken effect.

OPPORTUNITIES FOR PENSION CONTRIBUTIONS

As a result, you can now theoretically add to your pension (with set limits applying to tax relief) without worrying about a penal tax charge if you breach the old LTA. So, if you have had to stop paying money into your pension fund to avoid this tax, now would be a good time to discuss with us whether it would be prudent to add more.

INCREASED ANNUAL CONTRIBUTION LIMITS

Secondly, the maximum annual contribution has been increased from £40,000 to £60,000 subject to relevant earnings or those who have triggered the MPAA. It’s worth noting that this legislation could change again.

These changes could benefit you if you want to pay more into your pension and have a pension fund above or near the previous LTA figure or a higher fixed protection amount.

Additionally, if you stopped contributing to your pension and applied for ixed protection in 2012, 2014 or 2016, now would be a good time to discuss this with us.

A TAX-EFFICIENT WAY TO INVEST

At a glance, these changes seem to make pensions an even more tax-efficient way to invest – but pensions are complex, and these rules are not straightforward. There’s no guarantee that the LTA will not be reinstated, which could create issues. It is also possible that another protection scheme may be introduced if the LTA is reinstated.

Changing your pension contributions might also affect how you draw your salary. This means it’s desirable to get the right professional advice and consider your financial arrangements as a whole before making any decisions.

WHAT ARE YOUR OPTIONS?

If any of these questions apply to you, you may want to consider obtaining professional advice about your options. Do you have one or more old pension funds that might be treated differently under the new rules? Are you aiming to retire within the next couple of years, or would you like to retire earlier than you planned? Have you already made withdrawals from your pension but then returned to work?

Do you want to reduce the Inheritance Tax burden on your heirs? Might you inherit a pension soon? If any of these apply to you and you think you might be able to benefit from the recent changes, get in touch with us.

 TIME TO SECURE YOUR FINANCIAL FUTURE? 

Investing in a well-structured pension is a smart way to secure your financial future. With the potential for tax-free growth, it’s a powerful investment tool. Let us assist you in tailoring your pension plan to match your needs perfectly. Please contact us for more details or to discuss your specific pension requirements.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.