Adults could do better at money sums

from learning how to make your money work harder, what could we, as finance professionals, do about it?

We could consider developing a strategy to achieve your long-term financial goals, to realise your anticipated lifestyle. This can include your pension, property and other forms of investment.

It is possible to avoid unnecessary tax payments by means of allowances that are infrequently used. Only 700,000 people in the UK used their capital gains allowance in 2017 to generate tax-free returns of £11,300.

We can advise on how to mitigate the 60 per cent tax rate for earnings over £100,000 per annum.

It is important to know the part pension schemes can play in your longer-term financial goals, as well as the legal limitations on pension contributions and the benefits they provide (such as the 55 per cent tax charge on pension funds, in excess of the lifetime allowance).

There are many benefits and disadvantages to the wide range of investment options available to assist you in building capital savings outside a pension fund.

We can look at ways to ensure maximum capital goes to a family, if they were to die in employment.

Forewarned is forearmed. If we gain enough knowledge to plan early, then retirement can be approached positively. After all, you don’t know what you don’t know.

Lee Pittal is director at NLP, nlpfm.co.uk

*Source: research by LV (telegraph. co.uk).**Source: express.co.uk