There’s no better time than the end of the financial year to conduct a financial MOT and pension check to ensure your investment strategy is still aligned to your objectives and that you are not paying too much to the taxman.
The tax year ends on April 5 and you have until then to make the most of any tax-free allowances that can’t be rolled over.
To get you started we have compiled a list of key ‘hazard lights’ to check. 
Annual allowances
- Capital Gains Tax (CGT): £12,300
- Inheritance Tax (IHT): £325,000
- Pensions: £40,000
- Individual Savings Accounts (ISA): £20,000
- Junior Individual Savings Account (JISA): £9,000
Investment Portfolios
With so much changing in the global economy and political world it is essential to have a forward-looking investment strategy; to regularly review your portfolio and to ensure that your investments are continually positioned to meet your goals.
Many portfolios and funds have made good gains over the last few years, despite the fall at the initial time of the pandemic.
But this can lead to an investment having moved to a higher equity percentage and therefore a higher risk level.
If you are that bit older, or approaching retirement, this may not be the most suitable positioning for your investment.
Regulation
Do you have the most up to date pension plan?
The age you can access your pension is increasing from 55 to 57 in 2028. This might affect your plans and requirements.
This also highlights how pensions regulation frequently changes and your finances need to be prepared for further change in the future.
Taxation
Is there a possibility you might have other non-taxable income when you retire?
For example, you might have an Individual Savings Account (ISA), General Investment Account (GIA), investment bond, or cash available to take money from, along with your pension.
Income
There are several factors that are important to consider when assessing what level of income you need. Firstly, is any income actually required?
A professional adviser can calculate what a sustainable level of income is for your plans and what the most appropriate funds are to provide this. They can also help to be sure you aren’t paying unnecessary amounts of tax that could be avoided.
Secondly, when do you plan to retire? Have you considered where your income will come from if you retire before the age you can receive income from your State or Defined Benefit pension?
As noted above, you might have other income sources that could be sufficient to provide this amount, or an adviser could look to see if a form of ‘bridging pension’ is a solution.
Costs
Have you considered the costs and range of funds you currently have? You might want a professional to have a look if these are in-line with your needs both now and for any flexibility in the future. There may be costs associated with taking benefits from your pension or if you’re considering moving to a different plan if you want to change your options.
However, it might be that the costs of switching pensions are less than those on an old-style plan. It might be that a managed portfolio with fewer active strategies is more suitable for you due to their lower costs.
In summary, having an adviser check in on your retirement plans and current pension and other saving accounts that could provide possible income could enable you to have greater flexibility in the future and provide a better value for money plan.
For a free initial consultation or financial & pension MOT please contact Whitechurch on: wfc@whitechurch.co.uk, calling 0117 452 1208 or visit www.whitechurch.co.uk
The above is approved by Whitechurch Securities Limited, which is authorised and regulated by the Financial Conduct Authority. The contents may not be suitable for everyone and Whitechurch Securities Limited recommends taking professional advice before entering into any obligations or transactions.
