Have you decided to continue working past retirement age?
Many people continue working past the recommended retirement age for various reasons:
• Pension is not enough and need more income
• Enjoy your work and want to carry on
• Have you own business
• Still feel like you can contribute
• You have specialised skills that are sought after
People are living longer and often feel at retirement that they have so much more to contribute.
If you plan on receiving a pension and continue working, then there could be tax implications for you.
Remember that both your pension and your salary will be included on your total taxable income, and you could end up having to pay more income tax. Separately, your income will be taxed correctly, but when combined, it could put you into a higher tax bracket and thus you will owe tax.
If you are planning on working into retirement, then you need to meet with your financial adviser to discuss the tax implications of your decision.
Here are some tips to help mitigate the tax implications.
• If you don’t need your pension right away, you could defer your state pension for a few years. You could benefit with an increase for every month you don’t draw it.
• Your private pension could also be deferred, which means you could keep contributing into it and grow your pot.
• If you have a defined contribution scheme, it means that by deferring it, your investment will continue to grow till you retire.*
Chat to your deVere adviser about the implications of working into retirement. They will organise a video meeting with you in the comfort of your own home. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
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deVere Switzerland’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Switzerland’s Head of Public Relations on [email protected] or call +44 2071220925
With registered Branch offices in Zurich, Geneva and Basel, deVere & Partners Switzerland SA is a financial Service provider according to the Swiss Financial Services Act. In compliance with its legal duties, deVere & Partners Switzerland SA is a member of “Finanzombudsstelle Schweiz FINOS” ombudsman’s office (“FINOS”). FINOS is an ombudsman’s office according to the Swiss Financial Services Act and has been licensed by the Swiss Federal Department of Finance. FINOS is domiciled at Talstrasse 20, 8001 Zurich, Switzerland. FINOS can be contacted at their domicile, by phone no +41 44 552 08 00 or by e-mail to [email protected].