Whether you are looking to set up regular contributions to a pension pot or you are preparing to take benefits, we can help.

Pensions are there to enable you to prepare financially for life after work. When the day eventually arrives, you will need money to support your standard of living, and we can help you make sure you have enough money to continue with the standard of living that you are accustomed to. We will check if you are currently contributing the right amount, review your current pension performance, charges and investment risk, and importantly guide you through the various options available to start withdrawing your money, without paying too much or unnecessary tax in the process.

Are you a limited company and want to reduce your corporation tax?

As a limited business you can fund your pension from company profits by making a direct payment from the business into your pension. This will need to be discussed with your accountant to ensure the amount will satisfy HMRC rules, as long as it does, the contributions is classed as a business expense and will subsequently reduce profit and therefore corporation tax.

Pension Review

As you probably know, pensions don’t just sit there, they are a form of investment. But do you know where and what they are invested in? Do you know how they are performing, the level of investment risk you are taking and what you are being charged? If you don’t carry out regular reviews on the performance of your pension you could be losing out. You could even find that your pension will not be enough to provide you with the comfortable retirement you have planned. At Bedford Wealth, we can provide you with a full review of your current pension/s, tell you where they are invested, how they are performing and suggest changes if necessary to maximise the benefits and growth potential whilst remaining within your tolerance to investment risk.

PROPOSED PENSION AND INHERITANCE TAX CHANGES

Will this effect you?

Does this concern you?

The main purpose of a pension is to fund your retirement, however pensions can be a valuable part of wider financial planning with the current rules being favourable in relation to Inheritance Tax (IHT).

Current Rules

As it stands, pension funds are generally exempt from Inheritance Tax. This means that if you die, the money in your pension can be distributed according to the wishes of the trustees of the pension scheme rather than being automatically included in your estate for tax purposes.

New rules proposed from 6 April 2027

However, it’s important to be aware of potential upcoming changes. The Autumn Budget 2024 stated that from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for Inheritance Tax purposes, with the pension scheme administrators (typically the pension provider) expected to become liable for reporting and paying any Inheritance Tax due to HMRC. The detail behind this proposal and how it will work is still under consultation. An IHT exemption is expected to still be available for spouses or civil partners.

These proposed changes have lead to many clients needing to review and potentially change their financial plans which are already in place, we are already actively working with our clients who are effected to be prepared for this change

Get in touch if you are worried or need to check if this effects you