Typical questions other pension savers like you ask are!

As I’m sure your aware last week saw the introduction of the much talked about pension changes. We have been inundated with phone calls from clients & prospective clients who want to understand their options as we enter this new era of pension freedom.

Have you asked yourself any of the following questions?

  • Do the new rules affect me, even if I’m not retiring yet?
  • When can I start taking money from my pension?
  • Should I take the 25% tax-free cash as soon as I get to age 55?
  • How much tax would I pay on further withdrawals?
  • How exactly do I pass my pension on to my children?
  • Should I move money in savings accounts and other investments to my pension?
  • How do I ensure I don’t miss out on the benefits of the new rules?

Speaking to someone about your options is imperative! Why not do that with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

Are you a pension millionaire & you didn’t know it?

Here are a few questions to think about?

  • Did you know that a 54 year old who has been a high earner with 30 years working for companies with a Pension scheme could be sitting on a combined pension pot of £1m?
  • Did you realise that you could convert your pensions into an income whilst protecting the value of the fund for future generations?
  • Did you know that after April 2016 the pension lifetime contribution plummets by £250,000, resulting in you being taxed on money you may not even realise you have?
  • Did you know if you’re 55 or more this year you can protect your pensions against this and even start to get real value from the money you’ve set aside?

Please do have a read of the following article – Who wants to be a pension millionaire? How much would you have to put away each month to reach the £1 million lifetime limit on pension savings? http://citywire.co.uk/money/who-wants-to-be-a-pension-millionaire/a805312

Speaking to someone about your Retirement Options is imperative! Why not do that with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

Case Study – Living a comfortable life in retirement!


Having been retired for over 4 years Mr & Mrs G felt now was a good time to review their finances with a view to simplifying matters. They felt the amount of paperwork they had to deal with every year was an unnecessary burden. They had built up significant funds over the years with a number of different companies. Their previous advisor had retired a couple of years ago & they were looking to review their plans to help them clarify their current & future financial position.

Our approach

We arranged an initial meeting where we got to understand their financial situation, their lifestyle & their future plans. Here at Reeves Independent, we believe a great financial plan is central to achieving a more certain financial future. Understanding a clients attitude to risk underpins every financial decision. We do this with a questionnaire & the results help us balance out the level of risk with the expected investment returns to ensure the investment portfolio is fit for purpose.

We reviewed Mr & Mrs G’s financial & life style goals & produced a future cash flow analysis to help simplify their future needs

The outcome

We were able to simplify their investments by aggregating some of their investments into a single investment platform & some into another provider offering smoothed returns. We also simplified the number of tax wrappers used. This was achieved over a few years to ensure we maximised the tax allowances available to them both. Though the process there were also savings in annual charges which was a welcome bonus.

Mr & Mrs G now have peace of mind that their finances are in good order & can enjoy their retirement doing the things they had planned

Does this Case Study sound familiar to you? If you think we could help contact Reeves Independent on 0191 281 9862 or email info@reevesifa.com for a FREE introductory chat!

Pension Lifetime Allowance to fall to £1 million! Won’t just affect highly paid!

Following yesterdays budget the main thing our clients have contacted us about is how does the reduction in the Lifetime allowance going to affect them.

People’s perception is that it won’t affect them. However it is surprising how many people it can affect. Many senior public service employees or people who have been in Final Salary Schemes for years WILL be affected by this change.

Please do read this good article by Mercer below

Pensions Lifetime Allowance to fall to £1 million: Won’t just affect highly-paid! http://uk.mercer.com/content/mercer/europe/uk/en/newsroom/uk-budget-2015-mercer-comments-on-pension-changes.html

If you want to discuss how this change in the Lifetime Allowance affects you then contact us NOW on 0191 281 9862 or e-mail info@reevesifa.com to arrange a FREE initial appointment

Stakeholder Pensions for kids! “How to get a tax refund without having paid any in the first place……”

Imagine how much more you’d be looking forward to retirement if you’re parents or grandparents had already made sure there was a huge pot of money ready to look after you!

With the state pension under pressure and retiring early becoming increasingly difficult, for £20 you could start your child or grandchild on the road to a happy retirement! With the right planning and advice, even as early as 55, you could help create a millionaire!

Let’s look at a plan for an 8 year old, with the maximum £2880 per annum until they are 18. Each contribution attracts a further £720 in tax relief, which also goes into the plan – an immediate 28% return! Do this each year and over a 10 year period and you’ve set aside £28,800 for them. Assuming a 5% net growth rate and simple maths, and you will have created a Pension fund of £47,545 at age 18!

If contributions are stopped at that point but the fund if left to grow at that same rate of growth until age 55 then the fund could be worth £253,476!

In terms of getting value for your money, at 55 they could take £63,369 in cash from the plan, very pleasing considering you will only have contributed £25,920 of your own money!

So what we have here is a very tax-efficient way of saving for the next generation of your family, the most tax efficient in existence in fact, and you’ll be providing them with the opportunity to receive an extremely impressive pension at any point they choose between age 55 and 75!

Going to extremes, if you were able to contribute the maximum from the year if birth to age 18, and leave the fund from 18 to age 75, it could be worth £1.7m!

The downside of contributing to a child’s stakeholder pension is that they won’t reap the benefits of it until a long time in the future but in the right circumstances and out of the box thinking you can make a huge difference to their future!

If you want to discuss setting up a Stakeholder Pension for your child then contact us NOW on 0191 281 9862 or e-mail info@reevesifa.com to arrange a FREE initial appointment

Do you know whether your current pension arrangements and investments could make an early retirement a reality?

What income you need in retirement is subjective of course, and largely decided based on the lifestyle you want to lead and the bills you need to pay. What many people don’t know is whether the funds they have been able to build up can deliver what they require or if not, whether they are prepared to “cut their cloth” according to what their funds can deliver. It’s at this point that good advice is vital, because as my granny used to say “there’s more than one way to skin a cat”. I never really understood why you’d want to skin it at all or what the various methods were, but I did recognise the message….!

New data suggests that people turning 65 this year will need a full state pension and a private savings pot of £121,000 to fund a retirement lasting 20 years. That is based on achieving the average annual income people about to retire expect to get, which at present is £15,800, according to Prudential’s ‘Class of 2014′ research.

Life expectancy of 20 years following retirement is the current estimate provided by the Office for National Statistics – but some people will live even longer and therefore need more money.

If you live 25 years after retiring at 65, you will need a private pension pot of £139,000 to reach the average expected income figure, says Prudential. And if you live another 30 years, that rises to £154,000. Prudential is assuming you fund your retirement through a mixture of the full state pension and an income drawdown scheme, which allows you take annual sums out of your pension pot while the rest stays invested. Its figures are based on the expected growth rate of the Prudential PruFund Growth Fund.

Buying an annuity instead would guarantee you an income for life, but rates are poor and take-up has plummeted since ‘pension freedom’ reforms were announced in the Budget last March

Under Chancellor George Osborne’s pension changes, which kick in next April, people will be allowed to access their whole pension pot from age 55 and be given far greater decision-making power over how to spend, save or invest their money.

Vince Smith-Hughes, retirement income expert at Prudential, said its figures underline the importance of making retirement income decisions that address the risk of outliving your savings.

‘If retirees choose to draw income directly from their pension fund, they need to consider if it’s sustainable to take that level of income over an extended number of years. It is also important for people not to overestimate the value of the state pension as a fall back should they exhaust their retirement pot. The state pension alone is well below the income level most people estimate they’ll need for a comfortable retirement.’

Prudential also highlights how average life expectancy varies across the country. Retirees in East Dorset and Harrow in London live the longest on average – another 22.3 years after they turn 65. *

From 6 April, there will be three options available to individuals taking benefits from their money purchase fund for the first time:

  • ‘Drawdown’ where pot invested and income is taken. Flexi-access drawdown – this is the new form of income drawdown which will allow individuals to take taxable income from their pension fund with no upper limit
  • Annuity- Purchase a lifetime annuity. Under the new rules, lifetime annuities will be able to go down as well as up.
  • Full or gradual withdrawal of money which will be taxed as income – Taking one or more lump sums from uncrystallised funds, known as uncrystallised funds pension lump sum (UFPLS).

Individuals will be able to choose any combination of the above. From April 2015, there will be no cap on the amount of money savers can withdraw in a drawdown scheme.

It is imperative you look at all your Retirement Income Options! Contact us NOW on 0191 281 9862 or e-mail info@reevesifa.com to arrange a FREE initial appointment

* Read more: http://www.thisismoney.co.uk/money/pensions/article-2728970/Full-state-pension-plus-121k-savings-needed-average-retirement.html#ixzz3UZBsoGze

IMPORTANT! 3 weeks to go! Take advantage of your Pension Tax Relief Opportunity!

Sunday 5 April – last chance for contributions this tax year!

  • You have a contribution allowance each year. You do not have long to use your allowance this tax year – Sunday 5 April is the deadline.
  • There is speculation pension tax relief could be reviewed after May’s general election. We don’t know what changes will be made, if any, but 5 April could be one of the last opportunities to take advantage of the current generous rates of tax relief.
  • New pension freedoms are making pensions more attractive.

Please note that even though the new freedoms are making pensions more attractive, flexible and accessible, please remember a pension is still for retirement. The money can usually be accessed only from age 55 (57 from 2028), up to 25% normally tax free and the rest taxed as income. Tax rules can change and benefits depend on personal circumstances.

If you want to discuss your Pension Options then contact us NOW on 0191 281 9862 or e-mail info@reevesifa.com to arrange a FREE initial appointment

Please do read the following article for further informationUK taxpayers missing out on £2.9 billion of pension relief

For further information please have a read of Your handy guide to understanding tax

Additionally please have a look at our core services document or visit our website www.reevesifa.com for further information

Case Study – Creating a legacy for your family!

We were recently introduced to Mr & Mrs G from a long term client. Mr G, a 57 year old retired business owner & his wife (58) had a combined estate worth circa £2.7 million & had a number of different conflicting priorities & concerns.


Mr & Mrs G wanted to create a plan that allowed them to help their grandchildren with University fees, getting established in their careers & their first homes. Additionally they wanted to help their own children by way of loans if required.

They were worried about how to protect the legacy from any unforeseen situations the children or grandchildren may face like divorce or bankruptcy. Finally they were looking to simplify how they managed their wealth.

Our Approach

The process took a few months to build a complete understanding of Mr & Mrs G’s requirements. It was important to provide them with info enabling them to make informed decisions about their own financial future & their legacy as well as showing them the impact certain decisions would have on their future cash flow & tax status.

We worked with a number of different professionals during this time to ensure the plan was fully aligned to their wishes & delivered the goals that were important to them.


We were able to meet all of their objectives, significantly reducing their income tax liabilities in the process. A number of trusts were established & investment portfolios built to reduce both the amount of risk & cost in achieving their objectives.

As they had surplus income we advised them to regularly gift into one of the trusts. They were delighted with the results as not only was there an immediate reduction in IHT of over £200,000, but a further reduction of over £10,000 each year through the ongoing gifting. Finally we were able to cap the IHT liability on a further substantial portion of their wealth.

On the whole our advice enabled Mr & Mrs G to have peace of mind that their money was being well looked after & that they had provided the legacy they wanted for their family!

Does this Case Study sound familiar to you? If you think we could help contact Reeves Independent on 0191 281 9862 or email info@reevesifa.com for a FREE introductory chat! 

Case Study! Getting it right at retirement!

We were recently introduced to Mr & Mrs B from a long term client. They were both 55 & looking to retire when met them.


As Mr & Mrs B approached retirement they were keen to ensure they maximised their income & make the most tax efficient use of the assets they have accumulated. Mr & Mrs B held a number of pensions, assets & buy to let properties they planned to use to fund their retirement. They were however not too sure what all their assets could deliver in terms of income& how long it would fund their retirement for.

Our Approach

After an initial telephone call we sat down with Mr & Mrs B & agreed some goals around their lifestyle in retirement before drawing up a planner which focused on their long term retirement aims. This helped demonstrate how different levels of income impacted the amount of legacy they may leave their family.

The Outcome

The result was that Mr & Mrs B could take their dream cruise around the world for 3 months by utilising some of Mr B’s tax free cash from his pension plan. By reassigning some of their assets both can take a retirement income of over £20,000 & remain basic rate tax payers.

Mr & Mrs B now have annual meetings with us where we update and review their lifetime cash flow forecasts & financial plan, providing them with financial peace of mind, to live the life they want, secure in the knowledge that they won’t run out of money

Do this case study sound like you? If so please contact us NOW on 0191 281 9862 or e-mail info@reevesifa.com to arrange a FREE initial appointment

Additionally please have a look at our core services document or visit our website www.reevesifa.com for further information

Take advantage of the planning opportunities – Tax Year End 2014/15

It is vital you take advantage of all the opportunities available to you in respect to tax planning. Do you fall into any of the following categories?

  • Are you a new or existing higher rate taxpayer?
  • Are you a business owner?
  • Do you have children under 18?
  • Do you have an income between £100,000 to £120,000
  • Do you have IHT liabilities?
  • Do you potentially have CGT losses?
  • Are you retiring soon?

If you fall into any of the above then you should contact us NOW on 0191 281 9862 or e-mail info@reevesifa.com to arrange a FREE initial appointment

For further information please have a read of Your handy guide to understanding tax