Pension power – Maximising your future ambitions

Do you know where all your previous pension pots are and are they aligned with your future  plans? 

One risk that people face when moving companies is losing track of their paid-up pensions. It can make sense to review your old pension pots for a number of reasons.

Firstly, knowing what the total value of all your pension pots are will help you plan your future work timeline – when you could reduce or stop working, and what kind of lifestyle it could support. 

Secondly, what are you invested in? Does it suit your timeframe and ambitions, your risk appetite and plans for  the future? Often you’ll be invested in generic funds that assume you’re a standard profile – does that suit you  best? Probably not. 

Thirdly, circumstances change and your need for advice. Your situation and outlook on life will be different in  five, ten and 15 year’s time. Having the advice to help you navigate those changes, and being proactive with your pension investment decisions, can be crucial to make sure your ambitions don’t leave your plans behind. 

Finally, when it comes to accessing your pension, having it in one place can make life easier, giving you oversight  of your available options and the ability to discuss how it can best suit your needs, alongside the benefit of regular  reviews and ongoing advice in case of future legislation change.

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Are you making the most of your pension contributions? 

A pension is the most tax-efficient vehicle available to UK savers, subject to certain limits because the government typically adds relief to your contributions. This boost essentially increases the value of every pound you pay into a pension. 

Recent changes to legislation have meant that for some people, they have become an even more valuable and tax efficient way to invest for their future: 

1. Increase in the Annual Allowance – for the 2023/24 tax year onwards, you can contribute up to  £60,000, or 100% of your earnings (whichever is lower), for tax-relieved contributions. This is up from  £40,000 the previous tax year. 
   
2. Removal of the Lifetime Allowance – this was the total tax relieved pension savings you could accrue in your lifetime, with anything over and above this being taxed. Any charges that would have been due in current tax year have been removed, before the abolition of the Lifetime Allowance from April 2024.

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About the author

Charlie Channing-Williams provides bespoke financial advice to individuals, families and business owners. He does this through lifetime wealth planning, based on their unique circumstances and ambitions. 

charlie.channing-williams@sjpp.co.uk | +44 (0)7778 708968 | www.channing-williamswealth.co.uk  

Important note

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected  and may fall as well as rise. You may get back less than the amount invested. 

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is  generally dependent on individual circumstances. 

Channing-Williams Wealth Management is an Appointed Representative of and represents only St. James's Place  Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose  of advising solely on the group's wealth management products and services, more details of which are set out on the group's website www.sjp.co.uk/products. The 'St. James's Place Partnership' and the titles 'Partner' and  'Partner Practice' are marketing terms used to describe St. James's Place representatives. 

SJP APPROVED 26/4/2023

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