The Idealistic Approach vs. The Realistic Appraoch

Pension Associates specialises in the transfer of frozen or preserved pension benefits from the UK to an offshore country creating immediate tax benefits.

Many individual and corporate clients look to augment such transfers with ongoing personal pension contributions and we are frequently asked about “target funding”, or put simply how much needs to be saved monthly to accumulate a specific sum upon retirement. CLICK ON OUR PENSION CALCULATOR TO FIND OUT HOW MUCH YOU HAVE TO SAVE.

The only possible ways of providing for an adequate future pension are the ‘Idealistic’ and ‘Realistic’ routes.

The ‘Idealistic’ method is where a client is trying to achieve a specific level of income in the future, given an anticipated growth rate on the assets invested in, and a rate of inflation both pre and post retirement. The ‘Realistic’ approach is where a client earns ‘x’ and spends ‘y’, and then elects to allocate a sensible percentage of the residue into a pension vehicle of their choice.