Pension Planning and Retirement
Achieving the retirement you want is about more than building a pension pot. It is about having a clear plan for how much you need, how to get there, and how to take income in a sustainable, tax-efficient way. Our pension and retirement planning service helps you make informed decisions at each stage of your journey.
Why This Matters Now
- Recent pension rule changes, including adjustments to the annual allowance and the proposed inclusion of pensions in IHT from 2027, mean that pension planning has rarely been more complex or more important.
- Many people approaching retirement have accumulated multiple pension pots across different employers, creating fragmentation, duplication of charges, and misaligned investment strategies.
- Without a clear retirement income strategy, you risk drawing on capital inefficiently, paying unnecessary tax, or running out of flexible funds at the wrong time.
What is Pension Planning?
Pension planning is the process of building, reviewing and drawing on retirement savings, through pensions and other investments, so that you can maintain your desired standard of living when you stop or reduce work. It includes choosing suitable pension arrangements, deciding how much to contribute, selecting investment strategies, and planning how you will access benefits, whether via drawdown, annuities, lump sums or a combination.
Key Facts
- The annual pension contribution allowance is currently up to 100% of earnings or GBP 60,000, whichever is lower, subject to rules on carry forward.
- Up to 25% of a pension pot can typically be taken as a tax-free lump sum, subject to a lifetime limit.
- Flexi-access drawdown allows you to take income flexibly while the remainder stays invested.
- Pension contributions attract tax relief at your marginal rate, making them one of the most tax-efficient ways to save for retirement.
- From April 2027, unused pension funds are proposed to be included in estates for IHT purposes. This makes pension planning a key part of estate strategy.
Who is This Service For?
- Business owners who want to use pensions efficiently alongside other ways of extracting value from their company.
- Professionals approaching retirement who need clarity on whether they have sufficient savings and a clear drawdown plan.
- Individuals with multiple pensions accumulated over a career who need to consolidate and rationalise their arrangements.
- People already in retirement who want to review how they are taking income and the sustainability of their withdrawal strategy.
What This Service Aims to Achieve
- Establish how much income you are likely to need in retirement and when you will need it.
- Assess existing pensions and investments to see whether you are on track.
- Recommend suitable contribution levels, investment strategies and retirement ages.
- Design a tax-efficient income strategy, taking into account pension freedoms, allowances, and the interaction with other assets and tax bands.
Our Pension Planning Process
Clarifying Retirement Goals
We begin by understanding when you would like to retire, what lifestyle you hope to maintain, and any specific plans such as travel, gifting or helping family. This gives us a clear income target and timescale to plan around.
Reviewing Existing Pensions and Investments
We review your current pension schemes and other investments, looking at contributions, charges, investment strategies and any guarantees or valuable features that should be preserved.
Building a Retirement Funding Plan
We project your likely future income based on different contribution levels, investment assumptions and retirement ages. This allows us to recommend a course of action that balances affordability now with the level of security you want later.
Designing an Income Strategy
As you approach or enter retirement, we help you choose how to access benefits, for example via flexi-access drawdown, annuities, tax-free cash and other sources such as ISAs. The aim is to provide a sustainable income while efficiently managing tax and investment risk.
Frequently Asked Questions
Do I need a pension if I own a business?
For many business owners, pensions can be a highly tax-efficient way to extract value from the company and build wealth outside the business, alongside other strategies such as dividend distributions and salary structuring.
When should I start taking my pension?
Should I consolidate my pensions?
How will the proposed IHT changes affect my pension?
Important Information
This page is for educational purposes and should not be construed as personalised financial advice. Ark Wealth Management is an Appointed Representative of Quilter Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. The value of investments can fall as well as rise, and you may not get back the full amount invested. The levels and bases of taxation, and reliefs from taxation, can change at any time and depend on individual circumstances. Please consult Ark and other qualified advisers before making any decisions based on this information.