Our Services

Pensions

A pension is a tax efficient savings plan.

Pensions are a tax efficient way to save. You usually receive tax relief on the contributions you make into an approved pension. Money invested through a pension grows tax-free during your lifetime. When you decide to access your pension, usually from age 50 or 55 depending on the type of pension you have, you would typically be able to take a tax-free lump sum before you decide on an income option. Income can often be delayed if not required, but this will depend on the options available from your pension provider.

Pension legislation has changed several times over the years, and as a result there are a number of different rules that govern the options you have. Our advisers can help you understand pensions and how they can work and integrate with your retirement planning.

Past performance is not an indicator of future performance. The value of your investments can go down as well as up, so you could get back less than you invested.

We can help ensure you get the very best from your pension(s) by helping you:

  • Choose the right type of pension for you
  • Work out how much you should be paying into your pension to meet your retirement objectives
  • Understand how much income you might need during your retirement
  • Review and help you understand the options on your existing pensions
  • Ensure your pension is appropriately invested in line with your attitude to risk and objectives
  • Regularly review your pensions to ensure they continue to meet your retirement objectives
  • Ensure you have a sustainable level of income during your retirement
  • Ensure that you are aware of all other potential retirement income sources, such as ensuring you are up to date with your State Pension entitlement (on the Isle of Man and/or in the UK)

There are 2 main types of pension

Along with the State Pension from the government:

Defined contribution (such as a Personal Pension, Group Personal Pension, Self-Invested Personal Pension (SIPP) and the Isle of Man Pension Freedom Scheme (PFS)) – these are based on how much money has been paid into your pension plus any growth on the underlying investments. This is probably the most common and flexible type of pension available giving you some control over how much income you take.

Defined benefit (final salary or career average) – these are based on your salary and how long you have worked for your employer. These are now usually only offered by governments and local authorities, but you may have a preserved defined benefit pension from a previous employer. These pensions are usually regarded as being relatively safe, since you are promised an income which usually increases each year in line with inflation.

Don’t forget the State Pension. This may not usually be enough on its own, but it is valuable and can form a good foundation to your retirement income. Plus, if you have ever lived or worked in the UK you may also be eligible to a UK State Pension as well.

The Isle of Man Pension Freedom Scheme

In 2018 the Isle of Man Government brought in new pension legislation. Alongside the older legislation, we now have the Pension Freedom Scheme (or PFS for short). The PFS is a defined contribution scheme. It gives you more control and flexibility to manage your pension and retirement planning. The key features of the PFS are:

  • A generous 40% tax-free lump sum when you take the benefits OR
  • The option to use the 40% tax-free allowance on every income payment, instead of one lump sum
  • Flexibility to take your pension when you wish (from age 55)
  • The option to delay taking anything from your pension indefinitely
  • Any remaining pension will be pass to your nominated beneficiaries without the deduction of tax.

Other general pension rules to be aware of:

  • There is a maximum annual amount that can be paid into a pension to receive tax-relief
  • Income taken from a pension, after any available tax-free cash, is liable to income tax (but not National Insurance)
  • You may be eligible to fully encash older (non-PFS) pensions if you meet certain criteria (called Trivial Commutation or Fund Remnant on the Isle of Man)

Understanding your pension options, and how they fit in with your retirement planning, is where we can help.

 

Please remember, past investment performance is not a reliable indication of future performance. The value of an investment, as well as any income from them, can go down as well as up and you may get back less than you have paid in.

Testimonials

Our passion is to provide the highest level of customer service achievable.
This is what some of our clients have said about us.

Since being introduced to Tom 3 years ago we have been given sufficient confidence in his professional advice to move most of our investments to his control. We receive very regular, transparent and honest updates and advice and feel that he fully understands our personal needs and aspirations. Tom’s diligence with our investments finally persuaded us to also move our pension pot from another manager to the care of Chase Wealth. Even through this past Covid ridden year, Tom has steered us well. 

Julie and David Maddrell

I highly recommend Chase Wealth Solutions for Pension advice. They have been amazing over the years with helping me to get my Private and State Pensions in order.

Wayne James

Thank you for getting my pension transferred and then getting an annuity set up. I very much appreciate all of your help, and I am so grateful for you taking away the stress.

Thank you so much.

I also wanted to let you know that the lump sum arrived last week, and the first annuity payment arrived today. It was all dealt with very promptly.

Janet