1. RETURNING TO THE UK? Planning, Pensions & Pitfalls Presentation to the 1818 Society Dr Peter H Dinsdale, World Bank Retiree Steve Danson FPFS, Chartered Financial Planner

2. www.bankswealth.co.uk Opening Today’s Agenda Who We Are

3. www.bankswealth.co.uk What are your plans for retirement? www.bankswealth.co.uk

4. Nice holidays? www.bankswealth.co.uk

5. Agenda Issues to address Peter Dinsdale Things to consider Steve Danson Preparing for the UK Steve Danson My personal experiences Peter Dinsdale What can be done? Steve Danson Questions Peter Dinsdale Steve Danson

6. www.bankswealth.co.uk Issues To Address Mortgages, Insurance, Schools, Colleges Mortgage, Insurance, Certifications Business Start or Job Minimise Private, NHS, Travel Wisely, Risk Assess World Bank, NI Top Up Where To LiveBuy To LetEmploymentTax HealthInvestmentPensions

7. www.bankswealth.co.uk DUNSOP BRIDGE: Contender for the geographical centre of Great Britain

8. www.bankswealth.co.uk The Old Bank

9. www.bankswealth.co.uk Example Aged 58 Married with 2 children. Has had heart problems House owned in the US & UK World Bank employee for 10 years Retiring in 2 years Planning to go back to the UK in two years UK based investments Deferred pensions from previous jobs Does not intend to continue to work after 60 Would like to purchase a holiday home

10. www.bankswealth.co.uk If I was Mr Jones I would want to know: Are my investments invested appropriately given my pending retirement and future needs? Does my Will cover all bases? How much Pension will I get at retirement? Will this give me enough to do all of the things that I want to do in retirement? Is this income guaranteed or is there some element of investment risk? How much tax will I pay on my income? What will my outgoings be? Is it enough? What about inheritance tax? If I die first, will my wife have enough money to live on? Can I generate an income from my investments?

11. www.bankswealth.co.uk Things To Consider Tax UK/USHealth Existing Investments Existing Pensions State Pension

12. www.bankswealth.co.uk UK Income Tax System Personal Allowance £9,440 up to £100k Age Allowance World Bank Allowance Basic Rate Tax 20% up to £32,010 Higher rate tax 40% £32,011 (up to £150k) Top Rate Tax 45% BASIC HIGHER TOP

13. www.bankswealth.co.uk Example of someone earning £50k Assuming £20,000 WB pension = 0£9,440 taxed at 0% = 0£2,000 Additional WB Allowance = £6,402£32,010 taxed at 20% =£2,620£6,550 taxed at 40% Net income £40,978

14. www.bankswealth.co.uk Example of someone earning £118k Assuming £20,000 WB pension = 0£440 taxed at 0% = 0£2,000 Additional WB Allowance = £6,402£32,010 taxed at 20% =£33,420£83,550 taxed at 40% Personal allowance reduced by £9,000 Net income £78,178 Because you not only pay 40% tax on the income over £100k but also lose the PA, the effective tax rate on this income is 60%. This person should think about a £18k pension contribution

15. www.bankswealth.co.uk Example of someone earning £118k Assuming £20,000 WB pension = 0£9,440 taxed at 0 = 0£2,000 Additional WB Allowance = £6,402£32,010 taxed at 20% =£22,620£56,550 taxed at 40% Net income £70,978 plus pension fund of £18k Compared to net income of £78,178 without the pension. and makes a pension contribution of £18k

16. www.bankswealth.co.uk Taxable Income PensionsEmploymentInterestRentDividendsState Pension

17. www.bankswealth.co.uk Health UK NHSPrivate Provision World Bank PMI (watch out for the subsidy)

18. www.bankswealth.co.uk Investments CurrentAttitude To RiskIncome Tax On Increase & Dividends Capital Gains Tax

19. www.bankswealth.co.uk Assets Investment Bond ISA Investment trusts Unit Trusts OEIC Pensions Corporate Bonds Gilts Commodities Commercial property Cash or National Savings Shares

20. www.bankswealth.co.uk Fund Research Comprehensive fund and research selection Asset allocation models

21. www.bankswealth.co.uk Pensions Multiple PotsPersonalOccupationalWorld Bank

22. www.bankswealth.co.uk State Pension UK Basic State Pension 13/14. £110.15 (£144 from 2016?) SERPS. Going, going…….. Pension Forecast Topping Up Your State Pension Telephone 0845 9154811 or+44 191 2037010 www.direct.gov.uk/en/pensionsandretirementplanning /statepension/statepensionforecast/dg_10014008

23. www.bankswealth.co.uk Preparing For The UK Retire or Work Employed or Self Employed Investments Pensions World Bank Pensions

24. www.bankswealth.co.uk Personal Events Witholding Tax, CGT Leaving USA Mortgages, B2L, Certifications, Insurance UK Property Tax efficiency Self Employment Private, NHS, Travel Health National Insurance Top Up Pensions

25. www.bankswealth.co.uk Inheritance Tax 40% 325,000 Nil Rate Band £Other exemptions Gifts to Charity Discount for gifts to charity £3,000 per tax year Gifts out of surplus income

26. What Can Be Done? www.bankswealth.co.uk

27. Holistic Financial Review Analyse Existing Plans Discuss Your Objectives Retirement Income Assessment Investment ReviewIHT Trusts Gifts

28. www.bankswealth.co.uk Action Plan/ Recommendations What to do in the future? What do you need to do now?

29. www.bankswealth.co.uk Implementation: Help To Build A Portfolio Financial Plan Appropriate Asset Allocation Fund & Research Analysis Portfolio Construction

30. www.bankswealth.co.uk Review Change of Objectives Rebalance Increase/Decrease Risk

31. Thank You www.bankswealth.co.uk Questions & Answers Please complete your feedback form and come to us at the end if you want to arrange a free initial consultation while I am still here