Pension Advice & Retirement Planning

George Osborne started a pensions revolution in late 2014, opening up a wealth of new options and having a profound impact on the way people use their pension savings in retirement. Rules and tax treatment changes to personal pension accounts in retirement came into effect in April 2015, making them considerably more attractive.

These changes simultaneously rang the death knell for annuities. Over the past twenty years, annuity costs have soared as risk-free investment returns have fallen and life expectancy has risen. Annuities are an inflexible and irreversible retirement product that lock in current interest rates and lock out further investment opportunity or access to capital.

Not only are they expensive but they look increasingly outdated for modern retirement, which can extend over 25 years with periods of very different income and capital requirements. Even when rates were more attractive, annuities were never popular primarily because of the implicit gamble they represent. Those who die young do badly and end up subsidising those who live longer. Annuities are ultimately worthless to the next generation.

It is not surprising that within months of the legislative changes being announced, annuity sales collapsed. Swathes of people are using the new rules and using pension drawdowns to access their pension savings in retirement.

According to the Association of British Insurers, in the first 6 months a total of £4.7 billion in pension assets had been withdrawn and annuity purchases have fallen by approximately 62%. The Association estimates that this trend will continue as people begin to more fully understand the options available to them.

Financial Guides

January/February 2017 Magazine

January/February 2017 Magazine

Investment Outlook: Taking advantage of opportunities in 2017

Download

Factsheets

A Guide to 2016/17 Year End Tax Planning

A Guide to 2016/17 Year End Tax Planning

Taking advantage of planning opportunities means getting tax savvy now

Download

News + Media

HMRC Capital Gains tax increases by 60%

Wednesday February 15, 2017

HM Revenue & Customs (HMRC) collected an additional £140m from investigations into unpaid capital gains tax (CGT) over the last financial year. Through analysing data from HMRC, £55m of the figure came from investigations relating to ‘wealthy individuals’ and mid-sized businesses with the remaining £85m stemming from regular taxpayers and small businesses. The substantial numbers …

More

Top Trump -So what now ?

Thursday January 26, 2017

His inauguration on Friday 20 January. Trump was sworn in as the 45th President of the United States on the steps of the US Capitol at noon, when current president Barack Obama’s term expires. WHO ARE THE CLEAR WINNERS? Initially, the clear winners of this seismic election result appear to be US infrastructure and business. …

More

Breaking the Taboo of Defined Benefit Pensions

Friday September 02, 2016

Conventional wisdom has historically seen ‘final salary’ pensions being held up as the gold standard of retirement provision. This is due to the benefits of these pensions typically outweighing what most people in an alternative ‘money purchase’ arrangement could receive in retirement. As such, transferring benefits away from a final salary pension into an alternative …

More

BREXIT :Two Weeks on from decision

Friday July 08, 2016

life cover, life insurance, life assurance, trusts, discretionary trusts, tax planningA brief look at the FTSE 100 would suggest that not much has been happening since the UK voted to leave the European Union (EU). In fact, the FTSE 100 was at its highest level since August 2015 on Friday 1 July. The initial reaction in financial markets to the referendum result went as expected. …

More

Twitter

© 2017 AAC • all rights reserved • Site powered by Zostro

Registered in Scotland SC362302 Advanced Asset Consultants Ltd. is authorised and regulated by the Financial Conduct Authority FCA Registration No: 506551 The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK. This website is designed to provide you with general information only and does not attempt to give you advice on any particular investment or to recommend any particular investment to you. If you have any doubt as to whether a particular investment is suitable for you, you should contact Advanced Asset Consultants Limited on 0141 331 2434.

eia uksif