Independent Wealth Management

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Using Your Personal Allowances

I often meet married couples where the pension plans are all in the husband’s name.  For many this is the traditional way for retirement planning.  However, they could be missing out on a simple piece of tax planning.

When the husband in our example retires, he will pay income tax on all pension income above his personal allowance.  If half of the pension had been in his wife’s name, they would also benefit from her personal allowance and potentially receive twice the tax free income.

It is therefore very important to consider whose name a pension plan should be in.  There is no such thing as a joint pension.

Other factors should also be considered.  For instance, if one is a higher rate tax payer, it may be beneficial for the plan to be in his or her name.

If you would like advice on the most tax efficient way of planning for retirement, please contact us.

Please note that taxation is subject to change in the future.

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After a long career dealing with other people’s money (often major six figure sums on a daily basis) I considered myself to be pretty numerate. However, facing retirement the whole pensions jungle filled me with dread as I knew it was a task I would neither relish nor easily absorb. Having taken the decision to get some help I decided I didn’t want my bank involved nor any corporate suit.

From everything I’d read and heard it was clear that I personally needed someone who could guide me through the process, having first understood our needs and to then explain each step simply without all the uniquely incomprehensible language so often encountered in this industry.

I wanted a local Financial Adviser with a good track record and I initially used a website to draw up a shortlist of suitable candidates. Barry stood out as just the kind of bloke we could do business with and, having appointed him last year, we are delighted with his service.

It’s been quite a “journey” sorting it all out these past few months but we now feel we have fully optimised our pension options and at last really enjoy our retirement. We can therefore thoroughly recommend Barry to anyone seeking such a Financial Adviser.

Mr Peter Seabrook-Harris

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