September 15, 2017
2017 has been quite the year for pension changes. Following on from our recent blogs, Pension Awareness Day was on the 15th of September, so we’ve put together a list of vital information that you should know about your pension scheme:
What Options Are Available to You at Retirement?
Estimating how long your retirement will be can be difficult as none of us know how long we are going to live for. However, you are going to need to bear this in mind when deciding what you’re doing with your retirement savings, they may need to last longer than you think.
Of course, when it comes to retirement, many of us will have multiple sources of income. One being when you reach a certain age, you become eligible for state pension which is a monthly source of income. If you are currently saving into a work pension, you will also receive this. These are all forms of secure income and are guaranteed to last your whole retirement.
However, there are some incomes that you wish to receive but it is not guaranteed to last your whole retirement. Flexible income includes things such as; savings and investments, paid work and any rental property you own.
Which Pension Wrapper Do You Currently Have?
A pension wrapper is a system, that holds investments until you retire and start to claim retirement income. It’s a type of personal pension, with this, it allows you more flexibility with the investments you can choose which means you can manage them yourself. Another option is to pay an investment manager who will make a decision for you based on your circumstances. Please note, it is only recommended that you choose a personal pension if you have large funds to invest or you are already experienced in investing.
What Can We Do?
You’re going to want to prepare as much as possible for your retirement so you are able to live comfortably. There are still many questions that need to be asked, such as: What is the risk exposure to your holdings? Do you have a retirement age set? Is your pension managed?
Get in touch with the Bespoke Support Network today to help you identify the answers to these questions and help you to get the most out of your retirement.
September 14, 2017
For young people, it’s common to look at your pension as not a priority. Considering that retirement is a long way off for them, planning for their retirement can seem unimportant compared to the other financial priorities in their lives, such as saving for their deposit or paying off their student loan. Pair this with a busy social life and spending money on holidays/travelling, starting to save for your pension is definitely not at the front of young people’s mind – but it should be!
After speaking to older generations, the one piece of advice they give to the younger generations of today is; ‘to start saving now and feel the benefits later on.’
The team at Bespoke Support Network also agree with this. It’s important that young people recognise the importance of pension contributions early on in their careers in order to live a comfortable retirement. In fact, they are actually benefits to saving into your pensions early such as:
● Tax Relief – Pension contributions are eligible for relief from income tax. If you agree to a salary sacrifice arrangement with your employer (where you agree to a lower salary and your employer will pay the difference into your pension), you will also receive relief on the national insurance. While you may be giving up your wages to gain the tax relief, in the long term you will retain more of your salary for your personal benefit – as opposed to losing it to the government in tax you would otherwise pay.
● Employer Contributions – Employers are now obligated to contribute to company pension schemes, and so should contribute to your pension on your behalf. Their payments will be claimed as an allowable business expense, meaning they can be paid in gross. While the charges associated with company pensions are usually lower than an individual pension, you will receive additional funds you wouldn’t receive otherwise.
● Starting Early – Defined contribution schemes are now the main options for pension savings. While they are less generous than the older final salary pension scheme, the later you start saving, the harder it will be to save for a comfortable retirement – so start saving early if you want to be going on luxury cruises every month!
● Future of the state pension – As the ageing population in the UK continues to grow, there is an ever-increasing strain on the state pension fund. Experts are forecasting that the fund will run out before young people have the chance to claim their pension. Following this uncertainty, young people cannot rely on the state to provide for them during their retirement, highlighting the importance of saving into a private pension.
● Early Retirement – The earlier you start saving, the larger your savings will be and the more flexibility you will have when deciding whether or not to retire. As the state pension age increases; with current 18 years olds having to work until they are 70, you may not be eligible for state benefits when you want to retire. The bigger your pension fund, the younger you can stop working and enjoy your longer retirement.
If you’re looking to get pension advice, call our team on 0300 303 3441.
January 18, 2017
Over the last 10 years the blogging industry has come on leaps and bounds. It’s no longer just something you use to journal your days, or to write for fun, it is a business tool, that pretty much everyone knows about or uses. It has become a serious industry, and something you can take from being a fun idea to a full-time job in just a couple of years. On the flip side of that, blogging being a marketing tool for a business is a huge craze.
It can improve your ranking on google, your brand awareness among the community, as well as get you engaging with your prospects and current customers.
Furthermore, another positive is that blogging has no limitations, and no set rules. You can pick any topic you want to talk about and post your views in a matter of seconds. It doesn’t just work for one type of business either. No matter who your target market is, or the product or service you are offering, a blog can work for you.
When starting up a business, a blog is a great way to kick start your marketing, and presence on the market. By starting a blog before your products or shop has launched you can create a sense of anticipation and excitement between prospect customers. Creating something to talk about. You can choose the way in which you want to portray your business, in what you write. At the same time people, will get to engage with your morals and culture as a business too.
Starting a blog can be so easy too. It really doesn’t have to be overcomplicated. WordPress, which is currently the biggest blogging platform, defines blogging as ‘an ongoing chronicle of information.’ As a start-up business, if your marketing budget isn’t huge, blogging can also be a great cost effective way of marketing. Just like social media networks, its free to start a blog. Unsure of how to maintain it, or you’re not the best content creator, we can help. At BSN, we can support you with any kind of marketing issues you might have. We have marketing experts at hand, who can run your blog for you, leaving you one less thing to think about. For more information please get in touch.