Good strategy makes for a good pension

We provide the information and tools so you can take control of your retirement fund
and manage it yourself.

The earlier the better.

Just the word pension elicits the glazing over of eyes and the stifling of yawns, but it is for many of us one of the biggest financial commitments we will ever make. And for the rest of us, who think and hope the government will look after us in our old age, think again! It’s bad enough being old, but old and poor...

There are some attractive tax breaks when you invest in a pension. Now you can run your own pension, known as a SIPP, where you pick your own investments.

Already have a pension?

1.   First things first – it is important to check whether there are any additional benefits attached to these old pensions before you consider what to do with them, so dig out the paperwork.

Look very carefully if it is a defined benefit or final salary scheme and always seek independent financial advice if you are unsure. Whilst doing this, consider pooling your past pensions (often, people have four or five old pensions for past employers with a few thousand pounds invested in each) and investing them in a Self Invested Personal Pension or SIPP.

These old
pensions tend to
be gradually eroded
by high charges and

Managing your own
SIPP can solve these
two problems.

3.   Trustnet Direct offers a SIPP service which allows you to consolidate your past pensions (we’ll do the legwork of rounding up your investments and transfer them into your portfolio). From there, you can either change these holdings if you feel that they are not performing or invest more money into these funds or others. You can add any fund or share available on Trustnet Direct into your SIPP either by investing every month or in one-off amounts – or both!

Tax efficient investing

Investing in a SIPP is tax efficient. Every £800 you invest will get a further £200 added into your SIPP from the government and if you are a higher rate tax payer further relief will be given as explained in the diagram below.

New Pension Freedoms from April 6th 2015 Our ‘At Retirement’ Drawdown Service

If you wish to take control of your pension, we offer a tax-efficient SIPP to help you build your retirement savings. When you choose to retire, we offer the ability to encash these investments as and when you choose through our flexible drawdown service, whilst keeping the balance working in the markets.

For more information, please visit our SIPP page.

Pension action plan
  1. Do you have a pension? If not, the earlier you start the better.
  2. If you are in a pension scheme, are you and/or your employer contributing enough?.
  3. Think hard about what your expenditure might be once retired and then see how much you need to contribute to create a fund to provide this income.
  4. Do you have any past employer pensions that you can consolidate? You may be surprised at their combined value.
  5. Take control of your pension. Start a tax efficient SIPP, consolidate old pensions and build a plan to invest towards a target pension amount.
  6. Use the information and tools on the Trustnet Direct site to make sure you’re getting the best performance from your retirement investments.
  7. Finally – remember that you cannot access your SIPP investments until you are at least 55 years old, so ensure you have emergency investments that are more liquid.

SIPP: Self Invested
Personal Pension

Get a clear view of the advantages