Retirement Planning

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

Pensions are a tax efficient way of investing for your retirement and the income they generate will make a significant difference to you in your latter years. It is a complicated area of financial planning but it is an area that you can’t afford to get wrong.

The major benefit of contributing into a pension scheme is that the government will pay money into it for you. It’s not often that the government are willing to give you money so why not take advantage?

Planning at Retirement
Retiring and wondering what the best option is for you? Still working but would like to access some of your pension fund? From the age of 55 there are a multitude of options open to you when taking benefits from your pension. It has become quite a diverse area of financial planning due to the range of products that are available. If you don’t know your standard annuity from your drawdown or your enhanced annuity from your third way annuity we suggest that professional advice is needed to help you through this mine field. In some instances you only get one chance when taking benefits – make sure you make the right one.

To enjoy the standard of living we all expect and dream of in retirement it is important to take the right steps now to ensure that we have nothing to worry about later on in life. Having worked hard in life it is our role at BUTLER Capital to make sure your retirement is seamless and enjoyable.

There are many advantages to pension planning:

  • Tax-free growth – investments held within your pension grow tax free
  • Cost effective pensions – the introduction of Stakeholder pensions have cut costs considerably making many pensions a perfect way to save
  • Income tax rebates – you will receive an income tax rebate on contributions made.
  • Lump-sum – when you retire you can take up to 25% of your fund as a tax-free lump-sum.

Although some people might see some disadvantages, for example, your investment is tied up until you are at least 55. You also lose some of your present income to pay for it, so you will have less to spend now.

Auto Enrolment Update

Auto Enrol Image

As you almost certainly know by now, all businesses must enrol their employees in a pension scheme between now and 2017. The actual date depends on the size of your organisation. Even if you only have one employee you must comply. Those who don’t comply will be fined.

It’s a longer journey than many realise. The scheme must serve you and your employees well while satisfying the regulator, so careful planning is essential. You need to manage your costs and many of your systems and processes will be affected. Preparation can’t be rushed and, once you have finalised your plans, implementing them could take another twelve months or more. It’s easy to underestimate the time and effort required and, for those who haven’t set out yet, there is literally no time to waste.

You may be wondering how to get going. Or you may have started planning already but feel that you need professional advice to make sure you are heading down the right road. BUTLER Capital LLP can help.

With our clear and logical process you can cost all your options and choose the one that works best for you and your employees. From beginning to end, our experienced consultants will work with you and everyone involved – from human resources, finance and payroll to systems and pensions providers – so that you arrive on schedule. And we will help you deliver a solution which is not only compliant but also benefits your business.

Contact us on 01704 504375. We look forward to talking to you.

Employer Responsibilities

Take advantage of our experience and our professional and reliable approach. BUTLER Capital LLP Workplace Pension Consultants will help guide you through the maze of auto enrolment legislation.

What are the responsibilities of an employer?

  • Know when to start– employers need to confirm their staging date, which is when they first have to comply with all aspects of the new law.
  • You must identify who is eligible– your employees are defined as ‘workers’ and split into four categories: ‘eligible jobholders’, ‘non-eligible jobholders’, ‘entitled workers’ and others. Not all workers are eligible for an employer contribution. You have to identify who needs to be enrolled and who doesn’t.
  •  You must make contributions– employers must pay at least the minimum contributions for eligible workers. These increase over time. Workers can also be asked to meet some of the total cost.
  • Pension scheme membership must be automatic– you must enrol all eligible employees into a qualifying pension scheme automatically, with no action required from the worker.
  • Employees must be able to opt out– some workers may not want to be in a pension scheme. Your process must enable them to opt out within a limited timescale.
  • Provide access for all– all workers must have access to a pension scheme, whether or not they qualify for an employer contribution.
  • Communicate– you must provide workers with information in an effective way,
ensuring that you comply with legislative requirements.
  • Keep accurate records– you must keep information about workers and the auto enrolment pension scheme available for auditing.
  • Start all over again– every three years you must re-enrol all those eligible job holders who chose to opt out.

What to do next:

There is a lot of work to be done but there is still enough time to plan and implement a scheme fit for everyone’s purpose if you start now.

BUTLER Capital LLP offers professional and reliable consultation in the workplace pension arena.  Each consultation meeting will be tailored to suit your specific circumstances. It goes without saying that this includes a written report detailing your staging date and responsibilities.

You can depend on our professional experience to find the right solution for your business – confidently, quickly and without complication.

Stay up-to-date

This is where we keep you informed about all the latest developments at BUTLER Capital LLP and changes in auto enrolment legislation.

The Pension Regulator Shows No Mercy As Firms Struggle With Auto Enrolment

”….there is a risk if we allowed employers to say ‘we left it too late and it was difficult’, it would set a precedent.  We cannot have that type of excuse.”

The Pensions Regulator Spokesman

New Model Adviser Magazine 21st September 2012

NEST warns small employers will not be ‘hand held’.

”Our research shows that…employers with as few as one hundred staff – are expecting help from NEST and other providers…the fact is we won’t be able to and neither will any other provider.”

Roy Porter, NEST Assistant Director, Distribution.