Alternative Investment Market (AIMs) For Pension Funds
There has been a great deal of focus on wealth management in recent years, on the long-term sustainability of pension funds. As a direct response, many pension funds over the last few years have been investing heavily in the development of programmes in alternative assets as a means of facilitating improved returns over the medium and long-term.
Wealth managers are continuously reviewing their systems and processes to improve the funding levels of their schemes; aiming to maximise investment returns, protect their schemes against inflation, diversifying their investment portfolios, smoothing investment volatility as well as improve efficiencies through better management processes. Many view this as an important sector in the growth and preservation of the asset positions of UK pension funds. There are numerous barriers to entering this particular market. Specialist skills and experience is required to invest in private funds such as business valuation, financial modelling, sound knowledge of the underlying assets and more often than not, complex legal structures. Therefore a sensible informed approach needs to be taken when investing within this sector.
Access to Independent Chartered Financial Advisers
Pension Valuation, Tracing, Transfer, Release
Stockbroker Managed Investments
Property in Pensions Funds
Bespoke Consultations with Discretionary Fund Managers to build Pension Portfolio
Access to Consultations with Chartered Wealth Managers
Auto Enrolment Work Place Pension Solutions for Business Owners
Depending on the type of pension, it is possible to make withdrawals from the age of 55. There are no restrictions on how much can be withdrawn, the first 25% is tax-free; the rest is taxed as a regular income. Certain types of workplace pensions do have their own age restrictions so it is worth checking with HR. Withdrawals can be made from any private pensions and most workplace pensions. Withdrawals, however, cannot be made from unfunded public sector schemes such as the NHS, civil service and teachers as well as state pensions. Some pensions, such as final salary schemes, offer a guaranteed income for life as well as other benefits. Transferring out of such schemes may not be the right option as the benefits would be lost.
At Berkeley Private Wealth, we understand that for the majority; their pension is key to sustaining their standard of living for years to come. For successful business owners and High Net Worth individuals, pensions are one of the most tax efficient long-term savings options available. If you have concerns about the performance of your current pension fund, talk to us about our pension investment options which typically offer between 7% - 15% net annual returns, which for the majority would be a transformational level of income in their retirement years. Our unique investment strategies offer fixed rates of return, giving you greater certainty over the volatility of stocks and shares. Our client's journey starts with an in-depth consultation to fully understand their financial objectives, review the risks management and protection currently in place as well as conducting a full risk profile.
Tax Relief Limits
Technically there are no limits to how much can be contributed into a pension. There are however tax relief limits:
This limit applies to high earners. The current annual contribution allowance for tax relief is £40,000 as well as any unused allowance for the previous three tax years.
Since April 2016, high earners with incomes and pension contribution above £150,000 per annum would get a reduced allowance. High earners with an annual income above £210,000 will get a reduced allowance of £10,000 tax relief annually.
Tax relief on contributions up to your annual earnings.
The maximum amount savers can put into their pension pots over their lifetime - known as the "lifetime allowance" - was cut from £1.25m to £1m in April 2016. However, the lifetime allowance will increase from £1m to £1,030,000 to match CPI from 2018/19. We offer a structured approach to pensions, our services include:
Access to Independent Financial Advisers
Solutions for Individual Circumstances
Tax Efficient Investments