What is financial planning?
Financial planning is about helping to structure and manage your finances to achieve your objectives. This includes the efficient use of existing resources, ensuring tax efficiency, delivering the level of access and control you require, and perhaps also considering how your accumulated wealth can be passed on to the next generation.
Ideally, planning should be undertaken in the context of your total finances, and this is the requirement for a great many of our clients.
The Financial Planning Process involves developing strategies to help you manage your financial affairs so you can build & preserve wealth, achieve financial security, and most importantly enjoy your life.
Elsoms Financial Services Ltd is not authorised to provide investment advice, you will be referred to a suitably qualified and authorised adviser.
Saving for retirement is something that most of us put off for as long as we can. But the reality is that the sooner you start paying into a pension the higher your income in retirement is likely to be. If you're working you're usually building up the right to a basic State Pension but this may not be enough to give you the standard of living you want.
Automatic enrolment into a workplace pension
Between October 2012 and February 2018, your employer must enrol you into their workplace pension if you are an eligible employee. This is called automatic enrolment.
What is a pension?
A pension is a long-term investment with special tax rules – for example, you get tax relief on contributions. You can't access the money in your pension until you reach age 55. Some pension schemes have additional rules about when you can take your benefits; you no longer have to stop working to draw a pension as long as your scheme's rules let you.
Types of pensions
There are three main types of pension:
- State pension payable when you reach State Pension age.
- Personal pensions including stakeholder pensions and self-invested pension schemes.
- Occupational pension or workplace schemes. These include final salary, money purchase schemes and group pension schemes
What are the benefits of joining a workplace scheme?
Although you don’t have to join any pension scheme offered through your employer, it’s usually a good idea to join an occupational or work place scheme into which your employer makes contributions if it’s available. In addition to contributing your employer may also provide additional benefits such as life insurance and provision to retire early due to ill health.
Don't delay starting or joining a pension scheme - you could end up with a much smaller pension pot at retirement. Find out whether your employer offers a pension scheme, what type it is and when you can join it.
Elsoms Financial Services Ltd are not authorised to prodice advice for Pension and investment products, however this will be passed to a suitably qualified and authorised specialist.