Planning your retirement
If you haven’t started yet...
You really need to do something now.
Unfortunately, every year you wait to start
paying into a pension will make a difference
to the amount you’ll receive in retirement.
And the Government gives tax relief on
everything you put in – so why not start
taking advantage now?
Put simply, every £100 you add to your
pension will only cost you £78 in terms
of cash (or £80 from April 6th 2008),
potentially less if you’re a higher rate tax
payer. The longer you make your payments
for, hopefully the more it will build, although
the value of investments can go down as
well as up and you may not get back what
you originally invested.
So how much more could you have in
retirement, by starting a pension, say five
or ten years earlier? In the grand scheme
of things, five or ten years doesn’t seem
like much – but in terms of pension
provision, that relatively short time can
make a huge difference.
Please note that a pension could be a
medium to long-term investment because
benefits are available from age 50 (or 55
from 2010). Currently, 25% of the fund value
will be available as a tax-free lump sum, and
the remainder will be used to provide you
with an income for life.
To make it easier, we’ve put the figures in the
table below. Take a look at the row that’s
nearest to your current age and see how
much more you could have when you retire.
| |
Age when starting premiums of
£50 per month |
Annual income that could be provided
before tax at age 60 |
| |
25 |
£2,070 |
| |
30 |
£1,580 |
| |
35 |
£1,180 |
| |
40 |
£850 |
| |
45 |
£575 |
| |
50 |
£346 |
| |
|
|
This table shows the level of income that a 60-year-old man might receive if he bought a
level annuity. This assumes a 5% p.a. investment return on the premiums. These figures are
illustrative and not guaranteed. They are not minimum or maximum amounts, what you get
back depends on how your investment performs. You could get back more or less than the
figures shown. You may not get back what you put in. Inflation will erode the buying power
of the pension shown.
Our Financial Consultants will provide a personal quotation and Key Features document when
they advise you. Obviously tax treatment depends on personal circumstances and can change
in the future.
So, by starting to plan for your retirement
now with just small amounts each month
(that’s all it takes) you could:
- Allow the amount to build up gradually -
with a cumulative effect that will be
greater than simply ploughing in huge
amounts later on
- Help build up enough money to live on
when you could stop working, without
state benefits
- Help to avoid having to carry on working
past retirement age
We can help...
Start planning your retirement with us now and you can get the retirement you want. We can
help by arranging everything for you.
Simply contact your local office and arrange a meeting with an NFU Mutual Financial Consultant. Alternatively call 0800 622 323* to speak to a Customer Telephone Adviser. They’ll take the time to find out about you, your expectations and your circumstances – and estimate what you could end up with.
NFU Mutual Financial Consultants and Customer Telephone Advisers advise on NFU Mutual products and services and in special circumstances, those of other providers.
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Insurance
