Succession planning has to include your pension provision.
When we speak with dentists who are considering their future we always ask about their pension provision as this is such an important element to any succession planning.
We are not experts so always pass our clients onto a specialist team at FTA Financial & Wealth Management who are independent financial advisers specialising in working with Dental Professionals. Our clients will have worked hard to build up a pension provision, and with the ever-changing limit of Lifetime Allowances.
Even if you are not ready to start planning your retirement you should always seek advice on your pensions from an independent financial adviser who is authorised by the Financial Conduct Authority (FCA). You may have noticed the increasingly documented ‘Pension Scams’ which are wide-spread across the country (warnings have recently been detailed in TV adverts and on the BBC website). In these scams you receive cold-contact with an offer of a free ‘pension review’ and following this a proposal is put together, usually with very high growth rates declared for offshore investments in random industries; such as hotels or green energy schemes. Please note that these Pension Frauds will almost certainly result in your losing some or all of your money, the companies running these schemes are not regulated by the FCA and are not financial advisers. If in doubt you should always check the FCA register online to ensure the company you are dealing with are an FCA regulated entity. Even better would be to ask one of your professional services companies to provide a recommendation, so you know your financial advisers are legitimate and looking after your best interests.
Whilst you should be careful to avoid unregulated Pension Scams and fraudulent companies, you really should not use this as an excuse to never seek financial advice. If you do not have a professional financial adviser assess your pension fund before or during your succession plans then it is likely you will be limiting your pension capabilities and suitability. Pensions have progressed a lot in the past 12 years, especially since then new pension freedoms, tax-treatment and ‘drawdown income’ have been introduced. They are now the most tax-efficient and constructive investment product available. However with these developments has come increased complexity to your benefit options, investment opportunities and product choice. It is always recommendable to work with a professional financial adviser to maximise your pension funds and ensure that your pension income is tax-efficient in retirement.