PERSONAL PENSIONS

( WAS IT YOUR NEW YEAR RESOLUTION TO START ONE? ) 

I know that when many people leave the U.K. to come and live in the Canary Isles they leave their pensions behind them.  The Inland Revenue will not allow you to live and work here and still pay into your U.K. pension.  They will not allow you to transfer it out of the country unless there are very exceptional  circumstances and then only into an approved scheme.  In most cases, your 'frozen pension' will still grow at a rate equal to the Retail Prices Index  or at that rate agreed with your pension provider.  When you reach your normal retirement age, you can start drawing whatever pension has accrued.  But remember you can only have 25% in a lump sum, the balance has to buy you an annuity and is taxable.

So where does that leave you?  European governments are not likely to be paying traditional  'old age pensions' in the future as the money that they are receiving today is being paid out to today's pensioners . As the proportion of retired people compared to the number of working people increases, the governments are going to run out of money. This is why governments are now pushing people towards having private pensions to provide for them in their old age.

If you are living and working here, the best thing you could possibly do is start a Pension plan, with a Spanish insurance company.

The Advantages :

The biggest advantage is that you can claim tax relief on up to 8000 euros per year.

Once you have made the equivalent of 2 years contributions then the pension plan becomes very flexible in that you can Stop, Increase or Decrease your premiums, add irregular additional sums and change the investment fund.

You can pay your contributions either yearly, 6 monthly  quarterly or monthly.

There are some minimum premiums normally from as little as 30 euros a month but you have the option of increasing your contribution each year if you want to.  Remember to start at a level you are comfortable with.

You are never too young to plan ahead and you are never too old to start.

Please contact our office to arrange a meeting with our U.K. qualified Financial Adviser who can visit you at your place of work, at your home or at our offices, whichever is most convenient to you.  We make no charge to our clients and all discussions are completely confidential.

Remember, You have nothing to lose and probably a lot to gain, especially peace of mind and a financially secure retirement. 

So don't delay, contact us today!