Pension & Retirement
Case Study 2
Background & ObjectiveDr C is a member of the NHS Pension scheme and wished to make an additional contribution into her existing Personal Pension. After requesting information from the NHS on her contributions we discovered that she had unused pension contributions of around £60,000 accumulated over the last three tax years.
SolutionBy making a contribution of £60,000 into her personal pension in the current tax year, apart from benefiting from the tax relief, the contribution would be outside her estate for inheritance tax purposes immediately. The contribution of £60,000 attracted immediate tax relief at 20% so in effect Dr C only had to invest £48,000 of her own money. Because she’s a higher rate tax payer she’ll also be able to claim a further 20% tax relief (£12,000) via her annual tax return, meaning she will have received £24,000 in tax relief from HMRC. Dr C expects to be a basic rate tax payer when she retires, she has received 40% tax relief on the contribution now but will only be liable to 20% tax on any income she withdraws on retirement after she’s used up her maximum tax free cash allowance.
Ensuring adequate money is available for immediate daily needs as well as a reserve being set in place are just a couple of fundamental principles that are prerequisites to investing any sum of money.Investment.
Arranging care for yourself or a member of your family can be a complicated process as well as being very emotional. There’s a lot to consider, and the process can feel overwhelming if you don’t have the right assistance to find the best possible care for you or your loved one.
Vance Financial Management offer an extensive range of advice with pension planning depending on when you start your plan.
At Retirement, the advice needed is essential as the options available are wide and varied. Many of which are irreversible once selected, such as signing up to an annuity
Life Insurance provides you financial peace of mind insuring you and/or your family are protected in a range of circumstances including ill health, critical illness and death.
Could you and your family cope financially if you were not become critically ill and could not work? It’s not a nice question to consider, but it’s an important consideration. If you think you and your loved ones would struggle to pay the mortgage or meet the cost of other household bills, you should consider critical illness insurance.
It’s important for businesses to insure their company’s property, equipment and fixed assets. However, it is far too common for businesses to overlook the people who drive the business. Many businesses fail to recognise the potential impact the death of a key employee, shareholder, or partner could have on the financial security of the business, not to mention on their surviving family.
The current allowance whereby no inheritance tax is charged is on the first £325,000 (per person) of someone’s estate – which is the value of their total assets they leave behind when they die.
There are a number of ways in which you can avoid a high inheritance tax…
Do you need assistance managing your money so it can be used to help someone after you die or to contribute towards your care in later life? A trust is a great way to do this.
Kind Words from our Clients
I have always been impressed by his market knowledge , and desire to find solutions for retirement/investments that are best suited to our personal situation.
In addition,David helped to progress a critical illness claim after a fall at home 5 years ago ,resulting in premature retirement, when the company concerned was less than helpful initially.
His visits are always at a mutually suitable time and date , and David is a friendly and welcome visitor.
His investment suggestions and portfolio changes changes have proven to be good choices to date, and we look forward to David’s advice for years to come..
Dr A M
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When circumstances required prioritisation of attention and energy to other areas of our lives, it was reassuring to know he was continuing to monitor and review. He quickly responded to any questions we had and promptly dealt with matters which required attention.
The prospect of challenges ahead is less daunting, knowing that we have his continued support and interest in ensuring positive outcomes in our financial planning.
Dr B. B.
Miss A. M.
I would recommend him to anyone requiring impartial financial advice.
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Mr J. S.
My association with David has become a working relationship where I am happy to share all my private and personal information, in return for the best financial advice available. His advice to date has proved to be sound and I am very pleased with the monies that my investments have accrued over this period.
Dealing with David also makes me relaxed, knowing that he understands my lifestyle, he provides me with individual attention by considering the fine details of my financial position, he considers my future requirements and he always emphasises the possible attached risks.
Honesty and integrity are important factors to me and Vance Financial Management are a company that I highly recommend.