The new rules for deferring the state pension have added yet another layer of complexity to the retirement decision tree.

For some (particularly those who are now in higher rates of tax) it may be very beneficial to defer their state pensions at least until they cease to work but for others the figures do not work out.

The key is your health and tax rates now and when you wish to take benefits.  It is always a value call but we can help you to make the best decision for your circumstances.

This is one of the most frequently asked questions from new clients.

The simple answer is "as much as you can afford", however, this is far too simplistic an approach particularly when retirement planning is in fact only a segment of a coherent life plan.  We assess each clients detailed retirement requirements and income needs and then assess if they are viable.  Sometimes we have to change plans, perhaps accepting a lower level of income in retirement or perhaps waiting another five years before retiring whilst in other cases clients are pleased to note they have sufficient assets to retire sooner than they thought was possible.

The "Simplified Pensions" regime has made the pensions inheritance tax (IHT) considerations highly complex. Up until age 75 if you do not take your pension you may be able to leave your pension fund to your beneficiaries free from IHT however you have to set the pension up right, be in good health at the time you direct the death benefits, and further decide whether you want some discretion over who gets the money (ie to include your spouse) or whether you simply wish to nominate specific individuals.

The new rules on draw down and gifting in draw down add another layer of complexity to pensions and tax planning which again needs specialist advice.

Choosing the right type of pension when you come to retirement is possibly the most important decision of your life.  There are countless types of guaranteed compulsory and open market option annuities available and without specialist knowledge the lay person has little chance of getting the right options for them, or indeed of finding the most competitive pension available.

In addition to the annuity options there is the matter of whether you should take tax free cash from your plan or indeed whether you should join the growing number of people who have opted for a "draw down" pension.

National Insurance tax is going up again in 2011/12 tax year by 2% shared between employer and employee. Many main stream employers have now adopted "salary sacrifice" rules for their pension schemes and group personal pensions which will save them thousands of pounds in tax.

The use of salary sacrifice is perfectly legal as long as the proper procedures and processes are followed.

Whilst we are delighted that the anti avoidance regime came to an end on April 5th 2011, if you are considering a pension contribution under the new regime you have to consider the carry forward rules as well as the lower lifetime allowance.

Pensions are proving to be a highly efficient way of defraying the new 60% and 50% tax bands and again we can explain why they represent such good value to people in the right circumstances.

We have many clients who are applying for fixed protection so have a good knowledge of the complex decision making process to decide whether to retire, opt out, defer or carry on with defined benefit and defined contribution schemes.

The state pension is a mess. Even at the current levels it seems clear the country cannot afford to pay what has been promised in the past. The new government are once again overhauling the system trying to put back when state pensions can be claimed and further to move more towards a higher level of guaranteed benefits with no earnings related additions.

This approach is a wise one as advisers such as ourselves would otherwise be telling the lower paid not to join the new NEST state pensions savings plan..

Our free notes explain what is currently proposed (this does however change almost daily!) and what individuals should consider when looking at their possible state benefits.  If you would like to know more about the state pension then ask for our free guide.

In 2012 the new state pension scheme called the National Employment Savings Trust or "NEST" begins to be rolled out across the country.  By 2014 the scheme will be automatic for every employee in the land.

This scheme will increase wage costs by 3% and employees tax (although to be fair this is a savings plan) by 4%.  The pension itself will for many subsidise government benefits and for the employers it increases the already crippling cost of employing staff.

If you would like to review our client guide on the current proposals ask for our free guide.

Do you want a SIPP or a SSAS? A PPP or a Stakeholder or none of the these?  The traditional insurance company approach is fine for those who only have a modest amount to save but for everyone else an insured pension hamstrings choice and infuriates those who wish to have an efficiently run diversified pension portfolio.

Many of our clients hold property within their pensions and most invest in the complete range of collective and specific equity / bond investments available.