A happy and secure retirement

Tom Bradshaw

Private Client Adviser

If you are approaching retirement or in retirement, there are some valuable benefits that will allow your income to go further and help with the budgeting pressures in retirement.

What are some of the benefits available?
The State Pension – Since 2010, the triple lock has provided valuable protection for State Pension payments. The State Pension increases by the higher of:
• the average increase in wages,
• inflation measured by the Consumer Price Index (CPI),
• or a flat rate of 2.5%.

Payments in April 2020 for the new full rate State Pension rose to £175.20 per week, a rise of 3.9% due to an increase in average earnings, which is significantly above the rate of inflation. The State Pension age is currently age 66.

National Insurance (NI) – For the 1.2 million people who continue to work beyond age 65, a valuable benefit is that from State Pension Age, no NI is payable on earnings. This can be a considerable saving as employees pay 12% for earnings between £9,500 and £50,000, and 2% on earnings above this level.

Winter Fuel payment – Anyone at or over State Pension Age qualifies for this payment of between £100 and £300, depending on the number of people in the household. Last year around 11.57 million people received this payment.

Bus travel – In 2006, free local bus travel in England was made available between 9am and 11pm for older and disabled people. 8.1 million free bus passes were provided to pensioners in 2018/19, helping many to remain active and visit shops and amenities.

Dividends – Many pensioners may have shareholdings which can pay dividends. However, the annual dividend allowance was reduced from £5,000 to £2,000 in 2018. If you do have direct shareholdings you should consider using your ISA allowances so that these investments and dividend payments are exempt from tax.

There are also many other types of financial support, including Carer’s allowance, Attendance allowance, Home improvement grants and Bereavement support, which may also be available to you.

Helping you manage income in retirement
Our advisers are here to help you with your financial planning and your goals. We can use a cashflow plan to demonstrate how your investments can most efficiently provide the level of income which you need during retirement. Our modelling can accommodate any planned large one off expenses such as a family wedding, a special celebration or other large purchases.

Our advisers can help you to plan ahead and explain the financial support available to you, so you can enjoy a happy and secure retirement.     

CA5882 exp: 04/21

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