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If you haven't taken advice on this issue already, there could be substantial benefits from restructuring your retirement plans.

Who benefits?

Those with a total income in excess of £150k in any one of the last three years, who would like to continue to make contributions in excess of the annual £20k limit (in simplified terms) and retain the tax benefits.

Maximise your pension

By structuring retirement plans in the right way, it may still be possible to maximise both your contribution levels and your retirement income. As part of the same planning, it may also be possible to escape the tax charges that exist on death.

How this works in practice

We recently recommended that a client restructure an existing scheme, which has resulted in:

• Continued ability to obtain full tax relief on £150k annual contributions (escaping the £26k tax charge under new rules)

• Increased future drawable income levels

• No compulsion to purchase an annuity at any time

• All growth in the scheme passing on to the family, who are listed as scheme members

• Saving a potential £820,000 liability by overcoming the tax charge on death

Don't delay!

The age at which people can start drawing pension benefits will change next April from 50 to 55. So, if you fall within this age range, you really should be considering your options now, as a delay may mean a wait of up to five years.

For more information on personal tax planning issues, please contact a member of the Financial Management team.