School Fees Pension Plan
Throughout our extensive history SFIA has prided itself in making school fees less taxing for our clients - through the use of educational trusts between 1970 and 1990 and more recently by the development of our School Fees Pension Plan.
For those that qualify, our Pension Plan is often the best and most tax efficient option. By extending the time you pay your school fees, you may, frequently without any extra monthly cost, build up a substantially greater pension fund and pay off your fees. The additional tax relief gained can often be more than the original school fees!
You can take a substantial part of your pension as cash at the age of 50 (55 in April 2010) even if you don't want to draw income at that time. You may also continue to build up your pension fund after the withdrawal and take further cash payments.
Not everyone wishes or is permitted to use a traditional pension fund to build up additional assets for retirement. In that case, self invested pensions can be set up.
Your portfolio of assets may include:
- Direct investments in shares from the UK and around the world;
- Government and “blue chip” corporate bonds;
- Insurance company funds, investment trusts and unit trusts;
- Commercial property and Real Estate Investment Trusts (or similar);
- Cash.
Self invested pensions offer investors all the advantages of a standard pension plan with the added flexibility that:
- Contributions can be made when the member requires;
- Investments are fully controllable by the member (within broad guidelines set down by the government);
- Benefits can be taken in a highly flexible way to suit the member.
Self invested pensions put you in the driving seat.
An illustration example of a School Fees Pension Plan follows. You may also be interested in the Case Studies section of our Website.
Illustration
For higher rate tax payers, every £100 invested would result in a £66.67p contribution by HM Revenue and Customs. The following picture illustrates the return on investment for a school fees pension plan with a 20 year mortgage and a retirement planned for 25 years' time.
Monthly payments for this plan would start at £2,401 (compared to the £1,974 for simply spreading the cost over 25 years). Over the 25 year period an additional £498,408 would be paid into the plan, however a pension pot of £2,034,942 would be realised (subject to average growth predictions) and this is after the lump sum has been used to pay for school fees. This represents a profit of 308%.
This type of plan is applicable to people who are looking to improve their pension and are prepared to pay a bit more (over an extended period) than the absolute minimum. In this particular case, returns include over a million pounds of profit resulting from tax relief. This is typical for school fees pension plans. Contact us to find out more.
School Fees Pension Plan
Throughout our extensive history SFIA has prided itself in making school fees less taxing for our clients - through the use of educational trusts between 1970 and 1990 and more recently by the development of our School Fees Pension Plan.
For those that qualify, our Pension Plan is often the best and most tax efficient option. By extending the time you pay your school fees, you may, frequently without any extra monthly cost, build up a substantially greater pension fund and pay off your fees. The additional tax relief gained can often be more than the original school fees!
You can take a substantial part of your pension as cash at the age of 50 (55 in April 2010) even if you don't want to draw income at that time. You may also continue to build up your pension fund after the withdrawal and take further cash payments.
Not everyone wishes or is permitted to use a traditional pension fund to build up additional assets for retirement. In that case, self invested pensions can be set up.
Your portfolio of assets may include:
- Direct investments in shares from the UK and around the world;
- Government and “blue chip” corporate bonds;
- Insurance company funds, investment trusts and unit trusts;
- Commercial property and Real Estate Investment Trusts (or similar);
- Cash.
Self invested pensions offer investors all the advantages of a standard pension plan with the added flexibility that:
- Contributions can be made when the member requires;
- Investments are fully controllable by the member (within broad guidelines set down by the government);
- Benefits can be taken in a highly flexible way to suit the member.
Self invested pensions put you in the driving seat.
An illustration example of a School Fees Pension Plan follows. You may also be interested in the Case Studies section of our Website.
Illustration
For higher rate tax payers, every £100 invested would result in a £66.67p contribution by HM Revenue and Customs. The following picture illustrates the return on investment for a school fees pension plan with a 20 year mortgage and a retirement planned for 25 years' time.
Monthly payments for this plan would start at £2,401 (compared to the £1,974 for simply spreading the cost over 25 years). Over the 25 year period an additional £498,408 would be paid into the plan, however a pension pot of £2,034,942 would be realised (subject to average growth predictions) and this is after the lump sum has been used to pay for school fees. This represents a profit of 308%.
This type of plan is applicable to people who are looking to improve their pension and are prepared to pay a bit more (over an extended period) than the absolute minimum. In this particular case, returns include over a million pounds of profit resulting from tax relief. This is typical for school fees pension plans. Contact us to find out more.