When you have worked hard for your entire life, your retirement is a time to be enjoyed. Many people use their retirement to achieve a goal they have always dreamed of but never had time for; others wish to travel, spend more time with their children and grandchildren, or focus on philanthropic concerns.
Whatever the goals you have for your retirement, it is vital to ensure you have the funds you need to achieve them and live in comfort, for however long your retirement may last.
When you are working, your children are young and you have a mortgage and other financial liabilities, you may struggle to prioritise putting money aside for what seems like the long-distant future. However, developing a comprehensive retirement plan now doesn’t just benefit you in the long-term. In fact, the tax advantageous nature of pension contributions means that pension planning can also help you out financially in the here and now.
Contributing to your pension is a hugely tax-efficient way of investing; not only do pension contributions attract tax relief at your marginal rate, but investment growth of assets held within pension schemes is largely exempt from income and capital gains tax. Nor is your pension pot subject to inheritance tax upon your death.
Pensions can be complex, with a plethora of products and plans to choose from. Our financial advisers are here to ensure that your money is invested in the most suitable funds for your personal attitude to risk and future objectives.
As you approach retirement, we will be on hand with advice on how to best draw your income from your pension and combine it with other tax-efficient savings and investments, to ensure your money lasts for as long as you need it to.
At S4 Financial, cashflow modelling is central to our financial planning methodology. As a data-driven approach to financial planning, your personal cashflow model can help you predict what you will have in retirement if you continue contributing at your current rate. By building different scenarios into your cashflow model, we can help you understand the potential impact of poor stock market performance, higher or lower contributions, and raising or lowering your desired retirement age.
You can maximise your pension savings by taking advantage of tax relief on contributions, with a generous annual allowance of up to £60,000 in 2025/26. Supporting this with regular contributions – whether through your workplace or on your own – allows your investments to grow over time in a tax-efficient way. Starting early, even with modest amounts, gives compounding time to work its magic. We can show you how different contribution strategies align with your personal goals and tax position.
Choosing between pension types depends on how involved you want to be and how comfortable you are with investing. Self-Invested Personal Pensions (SIPPs) offer wide investment choice and flexibility, while workplace schemes can be straightforward and often come with employer contributions for added boost. The right plan balances investment growth with diversification to reduce volatility, to match your long-term vision for retirement.
With tools like cashflow modelling, you can explore ‘what-if’ scenarios, such as a sharp market drop, starting retirement later than planned, or unexpected expenses, to see how long your savings might stretch. This lets you test different withdrawal rates or timing decisions and adjust your plan as needed. We can help you to build a more confident and resilient retirement strategy that’s built to flex with the real world.
A tax-smart drawdown plan might include taking your tax-free lump sum and blending income through flexible drawdown, with withdrawals from ISAs or other tax-free savings. Drawing down gradually can help to keep you in lower tax bands, while leaving the rest invested to continue growing. This mix can offer flexibility, tax efficiency and long-term sustainability – without depleting your resources too quickly.
Whether retirement is imminent or you simply would like to get a head-start on planning, our advisers are here to support you with a tailored plan that offers the income you need to achieve your desired lifestyle in retirement.
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. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. You should seek advice to understand your options at retirement.
Join our subscriber community for our latest news and considered insights
Unit A, Causeway Farm
Cricket Green
Hartley Wintney
Hampshire
RG27 8PS
S4 Financial Ltd is an Independent Financial Advisory firm, authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.gov.uk/register/) under reference 401372. Registered office address: Unit A, Causeway Farm, Cricket Green, Hartley Wintney, Hampshire RG27 8PS. Registered in England, Company No: 05089919. VAT Registration no. GB 844 5062 31.
The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
The Financial Conduct Authority does not regulate cashflow modelling, tax planning, will writing, or trusts.
© 2024. S4 Financial. All rights reserved.
Website by TOMD
Join our subscriber community for our latest news and considered insights
Join our subscriber community for our latest news and considered insights
Join our subscriber community for our latest news and considered insights
