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Retiring soon Retiring soon
financialsurgery Autumn 2008 -Retirement Guide Retiring soon? Increasing the NHSPS Tax Free Lump Sum s from 1 April 2008 there is a Who might this new option benefit? This Retirement Guide is to help you with A significant change that affects those retiring and electing to take their This new option may be attractive to the following: 1 understanding: pension and lump sum due as a result of Those who have a requirement to pay off a mortgage or other large debt and options 1 Yourtax free for taking more as cash from the membership of the NHS Pension Scheme. Doctors and dentists can now apply to take intend to use the extra tax free lump NHS Pension Scheme. sum to this end. a substantially increased tax free lump sum 2 How to get the best from 2 annuities on personal in return for giving up a proportion of the Those who want to buy a property and will use the additional lump sum option pension funds. index linked pension payable. to help finance it. 3 On what the benefits 3 and disadvantages are on Previously members automatically received a lump sum that was three times the pension To help finance a cherished retirement aim – for example a boat on which to Unsecured Pensions (USP) otherwise known as pension payable. Now you can apply to take an spend more enjoyable retirement days! draw down if you have significant pension funds increased lump sum that is up to 25% of the total pension fund value 4 Those who prefer to take the extra lump sum and invest it tax efficiently to outside of the NHSPS. otherwise avoid paying higher rate tax Why you should build What do you give up to increase the tax- on the pension in retirement. 4 5 a diversified investment free lump sum? Those who would rather have as much portfolio. Giving up part of the pension for an increased control as is possible over their capital. 6 Steps open to you to use to 5 mitigate inheritance tax. lump sum is known as commutation. To increase the lump sum you give up £1 of Those whose family genes do not favour a long period in retirement. The history and pedigree of 6 DoctorsInvestDirect and our pension for every additional £12 of lump sum taken. The table gives an example. Remember when applying to take an extra tax Managing Director, Keith free lump sum it is in effect the advance Taylor who has helped There is complete flexibility in that a doctor or payment of pension. Once spent it cannot be doctors and dentists since replaced unless other assets are in place from dentist can simply take the pension and lump the 70’s. which income can be drawn. sum as delivered previously (the pension and Use our enquiry Form to ask us for help and guidance lump sum that is three times the pension) or If inflation remains low and you fully expect not any higher additional lump sum up to the to live more than say 12 years past your maximum permitted (£117,852 in our retirement date (and if married the same for your example shown on page 7). The only spouse) then taking the extra lump sum could requirement is the higher lump sum required be attractive. DOCTORSINVESTDIRECT must be divisible by 12. Continued on page 7... Important retirement information for doctors and dentists Living Time vs Conventional Annuity or those who are about to retire the ability to see F exactly what’s ahead for the next ten years or so would indeed be valuable. This problem is particularly acute when the time comes to decide on what it is best to do with accumulated pension funds at retirement. The main choices are twofold. Using the fund to purchase a conventional annuity that once arranged is fixed for life and cannot be changed later. “Living Time’s plans Alternatively the fund can be placed in an Because the Fixed Term Annuity will provide a environment where an income is drawn direct guaranteed maturity amount at the end of are unique because they from the fund, which remains invested, whatever term is selected, policyholders are offer guarantees over both without having to purchase an annuity at that given “another bite of the cherry” at a later age the capital and the income time, commonly referred to as income regarding their pension benefits. This is drawdown or pension fund withdrawal and because the fund produced at maturity can be during the term of the plan used to purchase benefits again, and these now USP. and at maturity.” benefits can more accurately fit in with Each of these approaches has elements that circumstances and requirements at that time. make them suitable to different people at Let’s look at some case studies opposite to different times but each of them also have demonstrate how this can be a real advantage. disadvantages. Conventional annuity offers certainty but inflexibility whereas USP offers In both cases a conventional annuity would Many people roll their flexibility but uncertainty with regard to the not have met requirements closely enough and would have been inflexible. pension funds into investment performance of the fund that is being used to provide the income. Living Time’s plans are unique because they a conventional lifetime offer guarantees over both the capital and the annuity far too early in their The industry has responded to this dilemma income during the term of the plan and at faced by many approaching retirement by retirement and without maturity. At the outset the retirees know introducing plans that bridge this gap. It is exactly how much income they will get during sufficient guidance on the called third way thinking and one new option the term and the size of the final maturity alternatives available. A key that we rate as being very attractive is the value, and also what will be returned should Living Time Plan from Living Time - a division point all those retiring need they die during the term. of AIG. to know is that the As with all major financial decisions proper The Living Time Plan provides a Fixed Term independent financial advice is vital and the guarantees and flexibility of Annuity that offers a guaranteed income from “Living Time Way” may not suit everybody but third way thinking means outset; a guaranteed maturity amount at the plans like this can provide a welcome end of the term, and a choice of death compromise between flexibility and certainty there can be many real benefits to provide protection should the in many cases. The potential benefits are benefits to ‘road testing’ policyholder die before the end of the certainly significant enough to warrant their income solution before selected term. research when retirement time comes for you. taking the final plunge into Introducing a plan like this opens up a new If you would like to find out more about a conventional lifetime avenue of flexibility for those who want such options, call us, visit our website or to have a balance between certainty return the enquiry form at the back of annuity later in life. and flexibility. this Magazine. 2 RetirementGuide Retirement at 60 If, on the other hand, Mr Hilton used his £100,000 to purchase a Living Time 75 plan that paid benefits from now until he reaches Mr and Mrs Hilton are both in good health presently but there is a age 75 the scenario would be different. family medical history of poor health in retirement years. The income payable at recent market rates would be £5,841.36 Consequently, Mr Hilton is concerned that his health is likely to per annum or £486.78 per month before tax and there would still deteriorate early in retirement. He believes that because of this he be a 100% benefit for Mrs Hilton. However, the guaranteed may well qualify for an enhanced/impaired life annuity rate before maturity amount would be £77,270.58 at 75. This sum could be age 75. However because they are well now and he needs to draw used at maturity to purchase fresh annuity benefits again then and income now they do not presently qualify for impaired rates. these will reflect whatever requirements apply at that time. At The fund available to purchase benefits is £100,000. If he impaired/enhanced rates the guaranteed maturity sum could buy purchased a traditional annuity with no death benefit guarantee but an annuity of £6,567 per annum or £547.25 per month. with a 100% pension for Mrs Hilton, recent market rates show that the income Mr Hilton could expect would be £5,783.52 per annum, In Mr Hilton’s case, if health deteriorates as expected then at that or £481.96 per month before tax. If he followed this route these time the guaranteed maturity amount could be used to purchase terms would be fixed for the rest of his and his wife’s lives and benefits that reflect his state of health at that time. With a could not be altered later, even if health deteriorates. conventional annuity there would be no such opportunity. Still Working at 65 When they reach age 70 the guaranteed maturity amount will be £127,463.62. At maturity this could provide a pension of £8,533.56 Mr and Mrs Barker are still in full time employment at age 65 and per annum or £711.13 per month before tax guaranteed for the so they do not need an income until they retire in five years’ time. rest of their lives. However they do have a number of debts they would like to repay Had they purchased a conventional annuity at age 65 they would now in order to reduce their outgoings. have received an income of £6,154.56 per annum or £512.8 per month before tax. Mr and Mrs Barker decide to take their tax-free lump sum from their pension funds by purchasing a Living Time Income Plan. Their Deferring by way of the Living Time Plan means that they have fund after the cash sum has been taken is £100,000 and they use been able to reduce their outgoings by reducing debt and receive this to purchase their plan for a five-year term to mature when they a higher amount of income later, again with the opportunity to reach age 70. purchase benefits that reflect their circumstances then. Understanding USP “The USP option allows you to control the way your pension benefits are paid to you and enables you to retain control of the underlying assets. You retain the option to purchase an annuity later at anytime with some or all of your fund if you consider a guaranteed income to be required. Death benefits generally are better...” he ability to take benefits income or you might have to retire on a joint life situation negating the need to T from a pension an annuity has been with us fund without having to purchase lower level of income than expected. USP Allows Flexibility have to buy a fixed joint life annuity. It also enables the income to be varied when other income or capital becomes for several years now. Here in Income available – starting to receive your state we address the benefits but pension or other occupational pension also highlight some of the risks As annuity rates have fallen, more and benefits for instance. and issues that must be more have entered USP rather than considered before taking your buy an annuity given its perceived poor Pension Commencement Lump Sum retirement benefits. value for money. This is partly because (tax free cash) is available from the The main benefit of an Unsecured the legislation allows income from a outset and you can decide as to how Pension (USP - previously called USP to be drawn up to a maximum of much or how little cash you wish to 120% of the equivalent single life Income Drawdown) is the ability to take. The maximum amount is annuity. Similarly there is no defer the purchase of a conventional calculated as 25% of the funds being requirement to take a minimum lifetime annuity. The past decade has used to provide USP benefits. Once income. This is very important as it seen a significant fall in annuity rates as allows the level of income to be varied you have taken the tax free cash lower rates of interest and longer life for the current year and each amount you cannot then take more expectancy have had an impact. In subsequent year in order to meet the from the fund if the plan value were to general terms annuity rates have fallen investor’s specific requirements. increase. Similarly if you decide to take around 40% over the past 10 years which means that your pension fund This offers the ability to match income less than 25% of the fund value as will either need to be 40% higher in more closely to needs. The withdrawals cash then you cannot return at a later value to provide the same level of can be sufficient to provide income in a date and request the balance. RetirementGuide 3 Control over Investment of Assets account. Using the USP you can defer annuity purchase until you reach age 75. This means that annuity purchase a Buy a conventional annuity in their own name; or With an Unsecured Personal Pension an investor retains control over the can be deferred until rates are more favourable and that the annuity b Continue to take an income within the drawdown contract until they reach age 75 following investment by selecting where to invest purchased can, if necessary, be spread over a long period of time ('Phased' which time they must purchase a the funds and also by switching between asset classes. Income can be annuity purchase). conventional annuity or change withdrawn from selected, individual from a USP to an ASP; or You are not then tied to one particular c asset classes with the opportunity to rate and as circumstances change (for Take the entire remaining fund as switch into annuities when appropriate. example from joint life to single life a lump sum, though this would This means that there is control over because of death of your spouse) a be subject to a special tax charge the amount of risk taken at any one more appropriate annuity can be of 35% (but would not fall time. It does however mean that a USP purchased at the correct time. into your estate for Inheritance will need to be reviewed regularly to Once an investor reaches 75, you will Tax purposes). ensure that the investment does continue to match with risk profile and be required to purchase an annuity or If you die before you purchase a the need to deliver benefits. change the USP to an Alternatively conventional annuity and the person to Secured Pension (ASP). An ASP has a whom you have elected to have the More recent and welcome development maximum income withdrawal rate of benefits paid is someone other than has seen the introduction of funds that 90% of the equivalent single life annuity your spouse or Civil Partner, that protect against loss of fund value or for a 75 year old, reviewed annually. person must take the remaining guarantee a certain level of income. The minimum income is 55% of the fund as a lump sum, less the 35% Providers such as Hartford Life and Met same single life annuity. There is tax charge. Life are pioneering the use of these however some major issues funds that can take much of the anxiety If you choose a phased USP, your fund and risk out of choosing the USP route. surrounding the tax treatment of the remaining funds upon death and we will be notionally split between `opened` The alternative route of buying a strongly recommend that professional segments and `closed` segments. The conventional annuity will mean that you advice is sought if you are approaching opened segments are those from have no choice or control once the age 75. which you are taking income and the investment decision is made. Your death benefits are as shown above. capital will effectively be passed to the Death Benefits better The full value of the closed segments annuity provider who will then invest would be paid to your nominated this money as they see fit; you will One of the major differences between beneficiary free of tax. however be guaranteed your specified USP income and annuity income is the level of income. way that death benefits are paid. When an annuity is purchased you will Generally the position before age 75 is have to select the level of death Annuity Purchase can much more attractive. If you die holding benefits that would be paid. Once a USP before you purchase a selected this choice cannot be be deferred conventional annuity and the person to changed even if your personal Making the decision to actually buy whom you have elected to have the circumstances were to change some form of annuity is always going to benefits paid is your spouse or significantly. Once any guarantees have be a difficult one with all of the various Civil Partner, they will have three expired all monies are lost to the considerations to be taken into main choices: annuity company. Unsecured Pension is not a risk free investments and could quickly erode the value of your USP plan. option for the following reasons: 1 Annuity Rate movements cannot be predicted, If annuity rates were to fall further then your income may 4 The level of USP income is periodically reviewed every 5th year and will recalculate the maximum amount of income you can take for the following be affected when you come to purchase 5 years. If your fund has gone down in value and/or the your annuity. Government Actuary Department annuity rate being 2 If you invest in a USP then a critical yield must be used to calculate the level of income has been calculated and taken into account. The critical yield is reduced, then your income will come down. 5 important as it qualifies how hard the invested assets Costs and charges are normally higher with a USP need to work in order to replicate the annuity that could contract as the level of administration and provision of have been purchased at outset. If the assets held systems are greater compared to annuities. within the USP cannot grow at these rates then it might In conclusion, the USP option allows you to control the be better to purchase an annuity immediately. way your pension benefits are paid to you and enables 3 Investment risk and asset allocation are crucial to USP working correctly. Your income (if taken) is taken directly from your investment funds. If markets move you to retain control of the underlying assets. You retain the option to purchase an annuity later at anytime with some or all of your fund if you consider a against you this will reduce the value of your guaranteed income to be required. For help with advice on pension retirement options, call us, go to our website or return the enquiry form at the back of this Magazine 4 RetirementGuide Diversify – A must when building an investment portfolio “Advice should vary according to whether capital creation or preservation is the main aim. Taxation too is important. Where possible all available tax shelters should be used provided the investment vehicles suit the investor.” f you are looking at how best to deploy capital of one type of asset or one investment company. It also has I before, at or post retirement, picture this scene in your mind’s eye. You get into a lift and press the button to go up to floor ten. regard to time, meaning when access to funds is required. The investor’s attitude to risk is key as each investment portfolio should be unique to the individual. Advice should It ascends. Just before floor five it jerks violently and stops. vary according to whether capital creation or preservation is You look up through the glass roof of the lift and see it is the main aim. Taxation too is important. Where possible all suspended on one cable that is now frayed half way through. available tax shelters should be used provided the You do not feel comfortable and press the alarm fearing you investment vehicles suit the investor. are about to experience a sinking feeling. You cannot exit the lift fast enough. You never make floor 10. In retirement all investments should not be set up to generate interest or dividends that are taxable. This is because whilst Now imagine another day. You get in the lift to go to floor ten. all interest is income, not all income need be interest. It ascends. It jerks and stops halfway up. You look up “Income” can be made to appear as partial encashments of through the glass lift ceiling and see ten cables suspend it gains. Such “income” may then be received tax free within and of these one is a little frayed. You do not feel anything like as alarmed and a few moments later the lift continues annual CGT allowances that are generous. Yet it is the case upwards. You exit at floor ten. that the £9,600 annual CGT allowance is the most underused of all tax free allowances given to investors by the Which lift would you rather be in? government, very often by those who are paying 40% Now substitute cables for your investment portfolio. The income tax on dividends, interest and pension income. analogy is that those who have been most disappointed by We urge readers to build diversification into their portfolios their investments over this decade are those who often have and to do so within each of the low, medium and higher overly invested in just one sector (one cable). They have sections of their holdings. Lots of cables means you can failed to diversify across a number of sectors (ten cables). If better withstand and minimise losses if one or two gets a they picked technology based equity funds leading up to little frayed! 2001 or almost any shares in the year ahead of 2001 the sinking feeling will have been alarming. There are many that We have experienced consultants who can advise you on have experienced this discomfort. Equally others may be your investment portfolio construction, be it by way of capital disappointed with their with profits policies and the fact many investment or pension accumulation. Our case studies show receive no bonuses. time and again how we have transformed the position of More recently, the fall in share prices, along with falls in those who come to us for advice, diagnosis and treatment. property values at the same time, will have hit those heavily Our past issues of Financial Surgery Magazine cover weighted in these areas to exclusion of other sectors. this area. Ask for a copy by going to the enquiry form A well-balanced investment strategy is one that is safely or visit our website and see our Library section. You diversified and does not depend overmuch on the fortunes can also ask us for individual help and guidance too. RetirementGuide 5 About 9 steps to mitigate Keith Taylor inheritance tax ere we set out 9 steps that exist benefit that each year the couple retains D ID is a specialist source independent financial advice in retirement matters and the areas of of H to help mitigate IHT. No mitigation strategy should become final without considering all over 99% of their assets for themselves. This is achieved by arranging joint life last survivor life insurance in trust for children. of these options, with the help of a wealth preservation and wealth creation. good independent financial adviser. Step 4: Consider using a The Company is dedicated to providing a very personal service to its clients. Step 1: Make a Will Loan Trust It is important to make a will to set out Let’s take a couple in their early 60’s who The Company has been lead by Keith Taylor whom you want to inherit your estate. If are willing to look at giving away only the our Managing Director since 2001. Aged 55, you die intestate, it is possible that growth in value on some of their capital, Keith’s career stretches back to the 70’s when others than those you intend to benefit in favour of the growth monies passing he first started to help doctors and dentists will share in your estate. Also consider to their children when the survivor of the with their financial planning. In all the time since making use of Discretionary Will Trusts two of them dies. In the meantime they to ensure you create maximum flexibility want to be able to have an income from then Keith has specialised as an independent in will planning alongside gifting of Nil their capital and want to be able to have financial adviser in serving the medical and Rate Bands (see article on page 40). access to the whole of the principal sum dental professions. if needed. By using a Loan Trust during His career has involved Keith in working in BMA Step 2: Consider gifting their lifetime our couple retains full House in London for 10 years, Manchester for capital away access to their initial capital and when required in the future this could be repaid 7 years, Stevenage for 11 years and for the last Each individual can make annual gifts of to them in annual installments to provide 8 years from a City of London base. He has £3,000 a year. You can also make gifts to income. Here the trust provisions ensure operated at director level helping to manage children in consideration of marriage of all subsequent growth on the amount £5,000 (grandparents £2,500). You can large companies and helped build small placed in trust does not form part of their also make gifts from normal annual companies to large concerns. expenditure that do not diminish lifestyle. estate for IHT purposes. All growth on By all means gift capital to grandchildren the capital invested is always therefore A much in demand public speaker, Keith has but remember that when you make a gift exempt from IHT and is owned by the lectured widely throughout the length and children through the trust. The loan trust to a first grandchild not to be overly breadth of the UK to practitioners. Meeting generous as you could be blessed with route is a useful way of controlling the clients and potential new clients is something many more. Gifts over and above the potential Inheritance Tax on an estate. Keith particularly enjoys. allowances but within the current nil rate band of £312,000 will be exempt from Step 5: Use a Gift Trust He is also well published. He has written IHT if you survive the gift by seven years. Lets take a couple who do have surplus hundreds of articles for journals. For doctors capital and are comfortable with giving GP Magazine, Medeconomics, Health and Step 3: A simple option away to their children a significant sum Aging, The Physician and the Journal of together with all rights to the income it Hospital Medicine are amongst his body of involving no large gifts could have generated for them. Here it is Let us suppose you are not willing to possible to set up a type of Gift Trust where work. For dentists The Dentist, BDA News, make large gifts of capital to children – as they make an outright gift of all the capital MADRAS Reports, Probe, Dental Practice and you want to remain in control of your invested. The couple are the settlors who Dentistry Monthly have commissioned Keith capital and the income it generates. Let set up the trust, appointing the trustees over the years. us also suppose you want a relatively (themselves and their children) and naming simple and straight forward solution to He is the editor and leading contributor to beneficiaries as their children. Essentially IHT funding and mitigation. Well if most our own client magazine entitled Financial they have given the money to their children couples in their 60s can gift just a quarter to a half of 1% of their total assets each but it only passes to them when the Surgery. The latest issue can be found in our year into trust for the children, for survivor of the two of them dies. Here, the website Library. trust provisions ensure all the capital gifted example £3,600 a year (or £300 monthly) Unlike many MD’s, Keith is easy to reach on an estate of £1 million, then this into the trust does not form part of their and very much is a “hands on” leader would generate sufficient monies in trust estate for inheritance tax purposes once 7 to meet IHT from the date of the first years has elapsed from its inception. The of the Company. Contact him on his monthly payment into trust. This would gift of capital is a potentially exempt mobile 07793 062 422, or by emailing transfer (PET). If they survive for 7 years be payable upon death of the survivor of Keith@taylorwealth.co.uk or by calling the the two of them – a sum of around after making the gift, the transfer will fall out numbers in the Contact Us section. £360,000. This comes with the great of their estate for IHT purposes. 6 RetirementGuide Step 6: Is a Discounted Gift Step 7: Look at Enterprise into an AIM Share Portfolio or a Residential Property Share Portfolio that Trust for you? Investment Schemes qualifies for business property relief. Yet another couple, this time in their early Such a route gains the investor 20% This will then will mean that if this 80 70’s, had significant means but felt income tax relief, deferral of any CGT year old survives just two years more, unable to give away to their children a liability and the capital placed remains we expect that we could have placed significant capital sum unless they could entirely in your ownership and is £100,000 outside her estate exempt retain a lifetime right to the income it exempt from IHT after just 2 years. from IHT. The above works because we generated. They needed the income to See the article on page 37 of create a debt against the estate that will be sure of maintaining their standard of our spring 2008 Financial Surgery act to reduce the portion that is taxable. living and to provide for future care Magazine (available in Library at The equity release extracts capital from needs if needed. Here a Discounted Gift www.doctorsinvestdirect.com) for a the property so this is then placed in a Trust could be used. With this type of practical case study. portfolio of carefully selected AIM trust the couple makes a gift of capital to trustees. As before the trustees then Step 8: Look at investments shares. Such shares can remain in the invest the money for the beneficiaries. ownership of our client and if she qualifying for Business survives just 2 years their value will be However during the couple’s lifetime they retain a right to income that will be paid Property Relief exempt from IHT. For those of most annually with the level of income fixed at As with Step 7 see the article on page senior years this use of Route 9 can be 5% at inception. The gift of capital is 38 of our spring edition Financial very powerful as inheritance tax again a potentially exempt transfer (PET). Surgery for a case study to highlight planning of the last resort. If they survive for 7 years after making how effective this route can be to the gift, the transfer will fall out of their mitigating IHT over two years, again Successful IHT mitigation in our estate for IHT purposes. The value of the without gifting away any of your capital. experience is normally achieved by PET will be less than the amount gifted use of more than one of the above into to the trust. This is because the PET Step 9: For those of more steps as part of an overall IHT is calculated as the amount they gifted senior years consider Equity mitigation strategy. What’s more into the trust less the value of what they these steps are rarely taken all at retained (their right to annual payments Release on your Home once. It is not unusual to build on for their lifetime). For a couple both aged Take as an example an 80 year old these step by step to mitigate IHT 70 the actual value after allowing for the whose estate had grown rapidly in as clients progress into retirement above is governed by their age, sex, value over recent years boosted by the years. The first step is the most health and the income taken as annual boom in property values. IHT might not important to start a short walk to payments to them. The discount on the have been much of a problem 5 years fully effective IHT mitigation. gift made is likely to be around 22% so ago but today IHT could be £100,000. that from say a total sum of £100,000 This is a real worry. She cannot count If you would like to find out only £78,000 counts as a PET that will on surviving another 7 years so giving more about such tax mitigation, fall out of the estate once 7 years has away her assets would not help reduce call us, visit our website or elapsed. The 22% counts as being IHT. Here we can use Equity Release of return the enquiry form at the back removed from their estate at the outset. £100,000 combined with investment of this Magazine. Continued from page 1 On the other hand, if from a family What is the best option will vary where genes favour longevity (or the according to the financial, family and If inflation remains low and you fully longevity of your spouse/civil partner) health position of each individual expect not to live more than say 12 years and you are concerned about rising practitioner. Then must be factored past your retirement date (and if married in other variables like inflation. the same for your spouse) then taking inflation long term this new option may Individual advice that is independent the extra lump sum could be attractive. be less attractive. and can be backed up with actuarial analysis is vital. DID is very well Taking more tax free cash lump sum placed to help practitioners given our familiarity with the benefits of the – an example NHSPS, our commitment to independent financial advice and the A member of the NHSPS receives notice that the pension payable upon availability of actuarial expertise retirement is £50,000 and the tax free lump sum is £150,000. within our company. Question: What is the maximum additional lump sum that can be taken and how much pension do I give up in return? We can help model the pros and Answer: The maximum additional lump sum that can be taken in lieu of cons around the above and so help pension is £117,852. The pension that must be given up from the £50,000 you come to a quality decision on otherwise payable is £9,821. what could otherwise be a tough Question: Suppose I only wanted to take £48,000 as an extra judgement to make. Remember commuted tax-free lump sum? How much pension do I give up? too that you only have one chance Answer: The pension given up to increase the lump sum by £48,000 is to get this right. £4,000. You give up £1 of pension for every additional £12 of lump sum taken. If you would like help with deciding Overall in this case the total tax free lump sum would then be £198,000 and whether to opt to take more tax free the pension £46,000. lump sum upon retiring from the Source: Pension commutation calculator on NHSPA website. NHSPS, call us, visit our website or www.pensions.nhsba.nhs.uk return the enquiry form overleaf. RetirementGuide 7 Contact us financialsurgery We have consultant advisers who are very experienced in helping our clients with their financial planning and Enquiry Form portfolio management. Our consultants have specialist skills to provide help and guidance upon request. DID is committed to providing you with whole of market independent financial advice. Advice can be by agreed fee or commission – you decide. This means We offer all new clients an initial the widest spectrum of independent financial advice is available to you from meeting for which we expect no fee or commission. Thus you may approach DID. Listed below are some of the areas we can help you with upon request – us for help in the knowledge we will simply tick the boxes, add your name, address and telephone numbers and only ask you to commit to being return by Fax to 020 7990 9812 or by post using the prepaid envelope provided: advised by us once we have met you, have fully understood your financial To DID, please let me have advice on the following: position and are comfortable with establishing a relationship with our Spring Edition Financial Living Time vs Annuities adviser. This is all-important. Surgery Magazine Capital Gains Tax Mitigation We accept that you may choose not to Post Budget Financial Review Protected IHT Tax Services take matters beyond a first meeting but we trust in the competence of our Pre Retirement Planning exempt after 2 Years advisers. So may you. At Retirement Planning Will Trusts To arrange for a meeting call us, or Post Retirement Planning Equity Release return the Enquiry Form. Understanding USP/ASP ISAs or PEP/ISA Transfer Tel: 020 7857 4038 Fax: 020 7990 9812 Merging Pensions to Add Value Investing in Tax Shelters or visit our website: Managing Pension Wealth A Full Review of my Portfolio. www.doctorsinvestdirect.com Retiring? Increasing NHSPS Tax Other – please state in box. Correspondence to: Free Lump Sum DoctorsInvestDirect: Security in Retirement through 3 Bunhill Row pension funds with protection London, EC1Y 8YZ Help with steps to mitigate Tel: 020 7857 4038 Inheritance Tax Fax: 020 7990 9812 VCT Schemes Registered Office: EIS Schemes Ternion Court, 264-268 Upper Fourth Street, Milton Keynes, Buckinghamshire MK9 1DP Name Address Postcode DOCTORSINVESTDIRECT Post: GP Dentist Consultant DoctorsInvestDirect is a trading style of Other Post (Please state) Date of birth Taylor Wealth Management Ltd which is Daytime Telephone No. Evening Telephone No. authorised and regulated by The Financial Services Authority. Email address* The comments and case studies in this *If you provide us with your email address you give us authority to communicate with you from time to time Supplement do not constitute individual through this medium and we may also send you future publications to this address. financial advice to readers. Readers should ask for personal advice before acting on any of the comments or case You can also call us on 020 7857 4038 or enquire through the Enquiry Page of studies shown. We are happy to provide our website – address as opposite. Individual Financial Surgery will then follow such advice. geared to your own needs. Acknowledgement FAXBACK TO DOCTORSINVESTDIRECT 020 7990 9812 We are indebted to Scottish Widows for the technical help they have given in producing this guide. We also value contributions or post back in the reply paid envelope made by Zurich and Living Time. 8 RetirementGuide
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