Why do you need financial advice for your pension?

For most of us, a pension is the most important savings vehicle we have. The capital we build up needs to provide us with an income that’s sufficient to maintain our standard of living after retirement, and ensure a secure financial future for ourselves and our families. However, there is more to managing a pension than simply choosing the best one. A financial adviser can help ensure your pension accounts for fees, taxes, your annual allowance and your other circumstances.

Require a professional pension advisor?

At Sanlam, we understand that pensions form the cornerstone of financial planning for retirement. We also offer pension advice and access to a variety of other savings vehicles that can make your savings go even further in later life. These include maximising your individual savings account (ISA) allowances and any other assets, such as rental properties.

Sanlam on demand
Ask one of our experts for help with your pension and retirement planning during a free, no obligation video or phone consultation.

What Sanlam offers:

  • Diversified pension investment approach

  • Regular review of your financial situation

  • Explain your pension plan and align it to your goals

  • Team of expert pension advisers

  • Knowledge of pension regulations

  • Recommend the most appropriate pension solutions


Pension plan for later life

Following changes to the regulations over the past few years, pensions are now very flexible in terms of how you can take benefits, which is typically from age 55. As a result, a pension is the most efficient vehicle for providing long-term retirement income.

It’s important to invest your pension fund wisely. At Sanlam, we believe a diversified investment approach using a Self-Invested Personal Pension (SIPP) can provide one of the best ways to grow your capital over the long term. We’ll monitor progress and review your situation regularly to make sure we’re on track for meeting your financial objectives.

Any legacy arrangements are likely to complicate your situation and consolidating multiple pensions can make it easier to manage your financial situation. However, some “older” contracts do have benefits that you may not be aware of, such as enhanced tax-free cash – more than the regular 25% – and guaranteed annuity rates, or even guaranteed returns.

Advice on maximising your pension contributions

Pensions enjoy attractive tax breaks. Similar to in an ISA, capital growth within a pension product is virtually tax-free. The government uplifts any payments you make into your pension – known as tax relief. For example, if a higher-rate taxpayer pays £600 into their pension the government adds £400, creating a total increase of £1,000 into their pension fund.

Our team of expert pension advisers will guide you through the wide range of investment strategies that are available, and recommend the most appropriate solutions. When you’re approaching retirement, we can work together to explore the options for taking benefits from your fund.

Changes to pensions

The UK government has made profound changes to pension regulations over the past few years. The upfront tax relief provides an efficient way to preserve and grow your wealth for retirement. Additionally, you will be able to pass on your benefits after you die – on death, but before 75, it may be possible for the full pension to be distributed to a beneficiary free of any IHT.

With the rules and annual allowances changing all the time, it’s important to review any pre-existing arrangements you may have and ensure your plans are appropriate for you and your family. However, as the number of choices continues to grow it can be difficult to know what will work best for you. The Sanlam pension advice team will provide you with in-depth knowledge of the markets and solutions available, and help you review your contributions and the type of income you will be able to take in retirement.

Pension age to be changed from 55 to 57

On 4 November 2021, the government published draft legislation, which increases the minimum age at which most people can access their pension benefits, from age 55 to 57, from 6 April 2028. Although further changes may be made before this becomes law, here are some points which should be considered by those born on or after 6 April 1971 when transferring a pension:

  • On or after 6 April 2028, clients may retain the right to draw benefits before age 57 and this is dependent on the rules of their scheme on the 11th February 2021. 

  • Most clients with a Sanlam pension product as at 4 November 2021 will have been a member of the Sanlam Personal Retirement Scheme and have a protected pension age of 55. Where benefits are transferred out on or after 4 November 2021 to another pension scheme the right to draw benefits at age 55 will be retained in respect of the transferred pot. Any such protection will apply to the transferred pot only and not to any other pension savings added in the future, such as contributions.

Those born before 6 April 1971 are not affected by the changes to the minimum pension age as they will already be aged 57 by 6 April 2028.

Clients can access a range of well-researched funds at an affordable price.
Philip Smeaton, Chief Investment Officer

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The value of investments and any income from them can fall and you may get back less than you invested.