Client retirement options explained

The more efficiently you invest the less you need to save - but what do we mean by efficiency?
October 2019

Barry Foster

Vice President,
Strategic & Technical Sales

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Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (October 2019). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone.

Key takeaways:

  • An introduction to the main investment tax wrappers available to retail clients
  • A comparison of the tax treatment of the main tax wrappers
  • How a multi-tax wrapper strategy can provide tax planning opportunities

The more efficiently you invest the less you need to save – but what do we mean by efficiency?

There are two fundamental things to consider when reviewing retirement options: what investments you select and what tax wrappers you use.

In this article we will consider the importance of tax wrapper selection – after all, having worked hard to achieve the best possible investment returns, does your client want to lose that investment performance to tax?

For many clients a pension and an Individual Savings Account (ISA) will suffice; indeed, relatively few people can find a £32,000 pension contribution (net of basic rate tax relief) and a £20,000 ISA contribution from disposable income every year, let alone find additional funds to put in other tax wrappers.

They may, however, need to consider tax wrapper diversification if they have inherited funds or have sold a business and therefore a substantial sum is suddenly available to invest.

So, what tax wrappers to select? Download our full article for our case study and explanation.

Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (October 2019). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone.