A Great Alternative To Private Pension Planning
A growing number of people are gravitating towards pension planning. The basic pension given by the state is quite meager and anyone who wishes to enjoy a comfortable life in his or her old age would want to have something more.
This is the very reason why many look for other ways to secure their future such as acquiring private pension policies. These policies are provided by firms who let people build up a certain amount of money they can eventually use upon retirement (or sooner).
There are numerous schemes under private policies but basically, the amount of money you will get depends on how much you have invested through time. Of course, before you can estimate this, you first need to determine how much you are amenable to pay and where you intend to spend the money eventually. This is not the end of the story though. Albeit knowing all these, you still can’t have a clear view of what you’re up to, unless you have gone through the entire terms and conditions of the policy.
Initially, private policies may appear to be a glorious way to pension freedom. But, you can’t really tell this unless you have gone through the papers one by one.
For one, it can incur high amounts of charges for setting up as well as managing the policy. These charges vary every year and are dependent on the amount of your fund too. As the fund of your pension grows, the charges increase as well. In the end, you might end up giving away much more than what you are willing to. Hence, you’d better think about things carefully.
Another thing about having a private policy is once you have decided to take the income, you will be asked to pay the tax. Some people in the past experienced having to pay more than half of what they got for overfunding penalty. Awful, don’t you think? Why was it even called pension planning when you can’t even plan for a way to get what you deserve?
Fortunately, there’s another way to secure your pension wealth completely. You can opt to transfer it to an offshore trust. Don’t worry, this is all legal. Your pension wealth can be moved into a fully secure environment under statutory protection. There’s really no need to fear.
If you intend to use your fund before retirement age, or you just want to pull out your investment from a taxable environment, opting for this scheme can be a lot wiser. Don’t be alarmed about your assets being transferred under the name of someone else (trustee). It wouldn’t take your ultimate power over them. You can even change trustees whenever you wish.
Besides, putting assets to an offshore trust comes with other perks such as freedom from taxes on rents, sales, and interests; as well as protection from the power of litigation, creditors, and divorce. Why would you pick conventional pension planning schemes from consultants when you can do things better, right?