Starting a pension

The value of pensions and investments and the income they produce can fall as well as rise, you may get back less than you invested.

Tax treatment varies according to individual circumstance and is subject to change.

Towards a rosy retirement

Does a pension feel like a necessary evil?

It can be a struggle to save for a pension when you have more pressing financial obligations and too many of us take the attitude ‘I’ll worry about that tomorrow – I have plenty of time’.

Or you’ve been put off by the pension scandals over the years and don’t trust that pension funds are good places to put your money.

Pensions can seem like a minefield – what to do for the best?

That’s why at Redwood Financial we try and keep things simple. Our face-to-face approach will make understanding the possibilities for your pension plan easy – and we promise to be as succinct as possible.

Did you know you can start paying money into a pension at birth? So it’s possible for parents to build up funding on behalf of their children. For adults, pensions don’t any longer have to be exchanged for annuities. In fact, recent changes in legislation open up a world of possibilities for funding your retirement.

It’s also important to remember that the sooner you begin paying money into a pension fund, the more it will be worth later. This may allow you to retire earlier than others of your age and make lower payments as you go along.

A bespoke approach

We don’t force-fit our clients into a ready-made pension plan. We understand that every client is different with different needs, so we tailor-make every pension we set up. To achieve this we use a three-stage process:

  • We spend time getting to know you and your finances.
  • We distil what you’ve told us into a report. We will then use this report to tell you what your options are in a face-to-face discussion.
  • We will take care of all the paperwork involved in starting your pension.

In stage one, we will check out all your options, particularly personal pensions, SIPS (self-invested personal pension schemes) and whether there are any company pension schemes available to you.

As with everything we do at Redwood Financial, every possibility will be explained to you in person.

Once we have chosen a suitable product and product provider, we will discuss with you which investments your pension payments should be placed into. It’s at this stage that we will take your attitude to risk into account. Are you cautious? Or are you somebody who doesn’t mind being a bit more speculative? Or somewhere in between? We won’t do anything until we understand where you stand.

As soon as you have calculated how much you can afford to put into your pension, we will complete the paperwork, explain it, and put the whole process in hand.

Pensions: something for everybody

No matter how you earn your living:

  • working for yourself,
  • working for a company,
  • as a business owner, partner or company director,

you can take advantage of the tax efficiency offered by pensions. You can even do so if you don’t earn any money.

Flexibility is the key to pension planning today.

You can, if you wish,

  • make regular payments,
  • make one-off payments,
  • or split the difference, or
  • use a combination of the two.

Most people, however, start their pension by making regular contributions. And these contributions can be varied from time to time to suit your budget or to allow for changes that may occur to your circumstances.

Contact us to find out more