BEACON WEALTH MANAGEMENT LTD
- Is £1 Million Enough?
January - March 2018
I grew up believing to be a millionaire would mean I would be rich beyond my wildest dreams and able to have and do anything I want.
Now, many years later and in my mid 50’s I realise £1 million is still a lot of money but inflation and personal expectation mean £1 million no longer goes as far as it did. Albeit it still goes quite a way.
The inheritance tax allowance is increasing to £1 million for a couple who pass their home to their children and who’s estate is below £2 million.
Pensions funds are usually outside of your estate and not included for inheritance tax
calculations, usually, but not always.
In a recent survey only 7% knew that pension providers have discretion over whom to pay the fund to, which is made worse when 32% had not nominated their request even though some had encountered changes to their personal circumstances.
Accessing pension funds in retirement is still regarded by many to be the favourable option
when this is often not the best thing initially.
Going back to the £1million.
How much do we need to feel comfortable and, better still, wealthy?
This will clearly differ between individuals. For some, the state pension is sufficient, whilst others want up to £10k per month, a big house(s) and considerable savings.
If we assume a house value of £500k - £600k and the remaining £400k to £500k in savings, then using an assumed 4%, income would be £16k - £20k per annum, which for many would
not be sufficient especially if wanting to retire early or have a desire to spend more whilst
Each client is different in terms of need and what they have, and my role is to become
a Rosetta Stone, to help with making sense of everything, be you a wealth accumulator or
You should always seek qualified advice from an IFA, preferably a Chartered (APFS) or Certified (CFP) Financial Planner.
Should you require financial assistance for pensions, savings, investments, mortgages, protection, long term care, employee benefits... contact the team at Beacon Wealth Management Ltd.
Tel: 01480 869466
The Old Chapel, Thrapston Road,
Kimbolton, Cambridgeshire, PE28 0HW