Professional Renaissance Limited is a limited company registered in England under company number 6380089. Our registered office address is: The Business Store, 98-100 High Road, Rayleigh, Essex, SS6 7AE.
Tax year end 2016
The Budget 2016
Tax dates 2016/17
On track for retirement?
If people have not saved enough then the freedom to take pension benefits in a variety of ways is of little value.
Despite all the advantages of saving into a pension - and the freedoms for taking benefits - the stark truth is most Britons are still not putting enough aside for the retirement they want.
On average, people want £23,000 per year retirement income, but believe that a pot of £204,000 will achieve this. In fact, it would require a pot of £407,000. (1)
More than half of people in the UK have never checked the value of their pension savings. Two in five don’t know how much they are paying into their pension pot, and three out of five don‘t know how much their employer is contributing. (2)
Furthermore, people tend to underestimate how long they will live. A 30-year-old today will live, on average, until about age 90. When asked, they predict for themselves a lifespan of just 79. (1)
While the increased flexibility in how pension income can be taken is welcome, the most important thing is to build a fund that gives you the retirement you want and is large enough to last the rest of your life.
To do this, everyone should make use of allowances and reliefs available in each tax year.
1. BlackRock Investor Pulse Survey, November 2015.
2. Aegon UK Retirement Readiness Report, May 2015.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.