What To Remember About Pension Planning Today

A growing number of people are gravitating towards pension planning. The basic pension given by the state is quite meager and anyone who wishes to enjoy a comfortable life in his or her old age would want to have something more.

This is the very reason why many look for other ways to secure their future such as acquiring private pension policies. These policies are provided by firms who let people build up a certain amount of money they can eventually use upon retirement (or sooner).

There are various schemes available for policies like this but generally, the amount you will get is dependent on how much your investment is. Of course, you need to determine how much you can pay and what exactly your goals for retirement are, ahead of time. These are important so you can at least have a glimpse of how your investing is going to be. Caveat: you still won’t be able to pinpoint what your future would be like despite. You must still thoroughly check the terms and conditions of the plan you intend to get.

It is highly possible that the policy will appear to be offering you the most coveted pension freedom, but, when it does, don’t get too excited.

See, a number of issues have surrounded private pension policies through the years. One of the most staggering is the amount of charges a policy holder has to pay. Charges for setting up and maintaining the plan can be a pain in the neck. They increase as your funds increase. In the end, you might get surprised at the mere total of their accumulation.

Another drawback of a private policy is once you’re already taking your income, you will be subject to pay an income tax. What a bummer, don’t you think? The money you saved for years wouldn’t only be a lot less due to charges but due to taxes too! So much about pension planning, right?

Fortunately, there’s another way to secure your pension wealth completely. You can opt to transfer it to an offshore trust. Don’t worry, this is all legal. Your pension wealth can be moved into a fully secure environment under statutory protection. There’s really no need to fear.

So, if you’re planning to use your fund before reaching 65 or 70, or just want to pull it out from a taxable environment, an offshore trust can be your place to go. The rights of ownership will be transferred but you can always change trustees at your pleading.

Apart from the ultimate power you have over your assets and being able to use them even before retirement, there are other wonderful benefits you can enjoy from a scheme like this. For example, it doesn’t have compulsory annuity purchase. It also frees you from taxes regardless of rents earned, profits from sales, and interest and investment growth, after getting top advice from consultants. Litigation, divorce, and creditors can’t touch your funds either because apart from the sworn secrecy, they’re under a different name too! What a great switch from your usual private pension planning scheme, don’t you agree?

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