This page contains a Flash digital edition of a book.
Budget 2014 –

what does it mean for your retirement planning?

The Chancellor’s recent announcement on changes to pensions and the Annuity market may have raised questions and concerns as you head towards retirement. Indeed, even before these changes, making decisions about the best way to convert your hard earned pension fund into a secure income for the longer term could be a daunting task.

Changes which have already happened

If you have more than one pension pot, and the total of all your individual pots is less than £30,000, you may be able to take these as a lump sum. Prior to the budget, the limit was £18,000.

If your pension pot is less than £10,000 you can take it as a lump sum, regardless of your overall pension savings. The first 25% tax free; the remainder taxed at your usual income tax rate. Prior to the budget, the limit was £2,000.

The limits on flexible drawdown, which allows you to take income from your pension pot while the pot remains invested, have changed. Before the budget you needed to be receiving a secure pension, state pension for example of £20,000 a year to qualify. Now the minimum has reduced to £12,000.

Changes which will happen next year

From April 2015 you will be able to withdraw pension funds at any time after age 55 however you wish. The first 25% tax free; the remainder taxed at your usual income tax rate. You are not obliged to buy an annuity.

Heidi Tresadern and Christine Milsted of Invicta IFA A little planning now could give you peace of mind forever.

Invicta Independent Financial Advisers can help with all your financial planning enquiries. We are a local business offering a friendly but professional service to individuals and small businesses. Our specialist areas include:-

Mortgages | Income Protection | Life Assurance | Business Assurance | Pensions & Retirement Planning Annuities | Savings & Investments | Trusts & Inheritance Tax Planning | Equity Release

Invicta IFA

1st Floor, Falcon Court 73 College Road, Maidstone Kent, ME15 6TF

Tel 01622 662636 Email Website

“When my husband was due to retire we were really confused about what we were meant to do and how to get the best out of his pension, then my husband saw the advert for Invicta. It was wonderful to let someone take over the hard work and they even managed to get 27% more than my husband’s pension provider was prepared to give him.”

There may be a fee for mortgage advice, the precise amount of the fee will depend upon your circumstance but we estimate it may be £500. Your home make be repossessed if you do not keep up repayments on your mortgage. Registered Office: The Granary, Hermitage Court, Hermitage Lane, Maidstone, Kent, ME16 9NT. Registered in England No. 3330755. Invicta IFA Limited is authorised and regulated by the Financial Conduct Authority.

Malling July 2014 7

But what do these new changes mean? Can you take all your money? Are annuities no longer an option? What are the alternatives? More importantly, what is right for you?

Adding to the confusion

We understand that the situation now can appear to be even more confusing than it was beforehand. Unfortunately, there is no one solution that fits everybody. That’s why the Chancellor is introducing more choice. A full consideration of the risks and benefits of each is more important than ever to make sure you achieve the best outcome for your own situation taking into account your personal status, health, tax position and objectives.

Taking the wrong course of action without advice, could result in the loss of thousands of pounds in tax but with careful planning this situation can be avoided.

If you would like to benefit from some expert guidance or want to discuss some of the choices available for your own retirement call me on 01622 662636 or email me at

Advertisement feature

Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48