If you are a member of a UK Occupational scheme, it is entirely possible that your pension funds are only being credited with the lesser of 5% or retail price index (RPI) instead of the real investment growth of your funds, typically this could have been only 2%-3% per annum over the past few years. Your former employer can legally keep any additional increase and use this to fund other employees. Well managed Pension funds have historically increased between 8%-12% per annum. In other words, you can be quite legally shortchanged.
If you have a Personal Pension it is typically from a life insurance company invested in one or more of the life company’s investment funds or with profits fund. With profits funds have recently been subject to much criticism and have been investigated by the Regulator. A surprising number of life insurance companies have closed to new business or have been taken over or merged with other companies. It is important to assess how your Self Invested Personal Pension has performed against its “peers” and whether your provider has embraced all of the new legislation for your benefit.
You can overcome the problem by transferring your scheme to an approved Self Invested Personal Pension under your control and enjoy 100% of the growth.
Pension benefits can, in most cases, now be taken from age 50 if you wish, even if the scheme was set up to provide benefits at age 65. For many this will mean 25% of the value of your pension can be taken as a cash lump sum, free of UK tax, with the balance left invested, or taken as income.
All of this can be done even if you have not actually retired. Important income alternatives are now allowed. You are no longer obliged to take an annuity (which could be to your disadvantage) but choose what is known as phased retirement income or defer taking an income to a later date. If this sounds complicated - you are right, it is complex. Kestrel International can advise you as to your situation and assist you in finding the best solution for you without any obligation.
Kestrel International have consultants in the United States. We will be pleased to review your pension arrangements.
Don't delay, you may needlessly be losing money.
This can be quickly rectified and worth thousands of extra pounds in benefit to you.
If you would like to set up a meeting,
or find out more CLICK HERE.
This service is only available to non-residents of the UK.
The value of investments can rise as well as fall. The past performance of investment funds is not necessarily a guide to future performance.
