Investing For Retirement

Supporting your future independence

The retirement market has changed significantly in recent years. The number of businesses providing final salary pensions has steadily declined even as the
state pension age has been gradually rising.

Changes in life expectancy, too, mean that we can look forward to many years in retirement. This means it is more important than ever to take advantage of all the tax reliefs and allowances available to you as a saver.

What are personal pensions, SIPPs and SSASs?

When it comes to pension investments, there are several potential options available to you. Personal pensions (commonly managed by a life company, in conjunction with a workplace scheme) and self-invested personal pensions
(SIPPs) are tax-advantaged ‘wrappers’ that enable you to build a pot of money for your retirement. These are referred to as defined contribution or money purchase schemes, where you pay money into the account and the value goes up or down depending on how the investments perform.
A small self-administered scheme (SSAS) is typically used by company directors, but benefits from many of the same advantages as a traditional, self-invested personal pension.
As people’s working lives have become more flexible, and as legislation has evolved to promote individual savings, more clients are choosing to take control of their own long term investments, whether via an ISA, a personal pension or, for maximum flexibility, a combination of the two.
This freedom is a positive development for long-term savers. It provides you with the opportunity to oversee and engage in the process of saving for your retirement and, if you are self-managing your pension, to make sure the investments accord with your needs and goals.
You can invest in a wide range of assets in a SIPP, including shares, unit trusts, investment trusts and exchange traded funds (ETFs). We offer our Advisory and Discretionary Managed services to both SIPP and SSAS investors.

Some of the benefits of a personal pension include:

Tax relief on contributions, subject to allowances
Tax-efficient growth within the pension wrapper
Withdrawal flexibility in retirement
Potential simplification of pension arrangements

How can we help you invest for retirement?

Farley & Thompson offers two main services for pension investors. Our Discretionary Portfolio Management service allows you to hand over the day-to-day responsibility for investment selection to an experienced manager. They will monitor your portfolio and make investment changes on your behalf.
Our Advisory Portfolio Management service is a good option for people who want to be more actively involved in the decisions behind their investments. It provides you with the support and guidance of an experienced investment manager, but leaves you in control of the final investment decision.
After an initial meeting to understand your personal circumstances, investment objectives, and attitude to risk, we will prepare and present a Suitability Report for your consideration. This will set out our recommendations and proposed scheme of investment, together with the associated costs.
Investors in both services will receive regular portfolio statements and reviews, and all securities are held electronically in our nominee account.

Frequently Asked Questions

Can I open a pension account directly with Farley & Thompson?

Not straight away. By law, a new pension account needs to be opened by a pension scheme administrator. This is an HMRC-approved company that acts as a trustee for your account, with you as the scheme member.

Why do I need a pension scheme administrator?

The administrator is responsible for registering and operating the scheme in line with HMRC requirements. They ensure it complies with current pension legislation. They also provide information to you, as the scheme member, regarding your benefits and will handle all pension contributions.

I already have a personal pension. Can I transfer the investment management to Farley & Thompson?

Yes — if your current pension scheme administrator permits it. However, some pension companies — especially life insurance and online providers — combine the investment and scheme administration processes and do not facilitate an external investment manager.

Can I switch to another scheme administrator?

Yes. If you wish to use our services and we are unable to manage your pension investments alongside your existing administrator, we can introduce you to an alternative scheme administrator.

Can I merge my personal pension with my ISA or Nominee investments already held at Farley & Thompson?

No. Your pension assets must be held in a separate account so we can report correctly to the scheme administrator. Additionally, all cash coming into or out of the personal pension goes via the scheme administrator, in accordance with HMRC rules.

Would I need to pay a fee to both Farley & Thompson and the administrator?

Yes. The pension administrator charges for their services. These costs are additional to Farley & Thompson’s charges.
For definitions, please click on the word or see our Glossary.

For more information please contact us

Pine Grange, Bath Road,
Bournemouth, BH1 2NU
Call Us On
01202 295000
Our mission is to build trust, provide clear and comprehensible advice, be accessible to our clients and strengthen relationships that last across the generations.
Authorised and regulated by the Financial Conduct Authority

Member of the London Stock Exchange

Farley & Thompson LLP is a Limited Liability Partnership registered in England and Wales under number OC324180

Registered address: Pine Grange Bath Road Bournemouth BH1 2NU
Data ProtectionSite Terms & ConditionsCookiesAccessibility
Photography by Phil Jackson, Harbour View Photography