Pension Planning Designed Around the Future Lifestyle You Want
Whatever stage you’re at, it starts with knowing what income you’ll need.
Wherever you're starting from, you're not behind.
Pension planning conversations often assume you've already got one sorted - a pot building away, contributions on autopilot, someone keeping an eye on it. For a lot of business owners and self-employed professionals, that isn't the reality.
You might recognise one of these:
You haven't started yet. Most of your time and money has gone into the business. A pension has been on the list, just never quite at the top of it.
You have a pension, but you don't know if it's enough. Something is ticking along in the background - a workplace scheme, maybe a personal one - but nobody has ever told you whether it's actually on track for the life you want later.
You've got pensions scattered around. A few jobs ago, a few jobs before that. Small pots, old providers, paperwork you've half-lost track of. You know they exist. You don't really know what they add up to.
None of these are unusual. They're just different starting points — and pension planning should meet you at yours, not assume you're somewhere else.
Independent, FCA-authorised advisers | Designing Tomorrow’s Income, Today.
What a pension is actually for.
TD Question ❓
Have you ever actually worked out what income your current pension is likely to produce - or are you assuming it'll be "enough" without having checked?
It's easy to talk about pensions as though they're the goal.
They're not.
A pension is one way of building the income you'll rely on once your salary, dividends or business income slow down or stop.
That's really the question underneath all of this: where will your income come from when today's income isn't there anymore?
A pension helps answer that because of how it's built:
Tax relief - contributions typically attract tax relief, so a proportion of what would have gone to HMRC goes into your pension instead. The exact benefit depends on your rate of tax and personal circumstances.
Employer contributions - if you're employed (including by your own company), your employer can usually contribute directly, on top of anything you put in yourself.
Investment growth over time - money in a pension is typically invested, so it has the potential to grow over the years before you access it - though, as with any investment, values can fall as well as rise.
None of that makes a pension automatically the right or only answer.
It's one tool.
The right combination of pensions, investments, property and other assets depends on your circumstances, goals and timeframe.
How much pension do you actually need?
This is usually the real question hiding behind "should I have a pension" or "is my pension enough" - and it doesn't have a single right answer, because it depends entirely on the life you want later.
A more useful way to think about it:
What income do you want, later on? Not a pot size - an actual monthly or annual income figure, in today's terms.
What income will you already have? State Pension, any existing pensions, other income-producing assets.
What's the gap? The difference between what you'll have and what you want.
What needs to be built to close it? This is where pensions, alongside other assets, come in.
Starting with a target pot size ("I need £500,000") without first answering what income that's supposed to produce tends to lead to either under-saving or unnecessary anxiety.
Starting with the income you actually want gives you something to plan towards.
The best pension planning
starts long before you actually need the income.
The different types of pensions you might come across
You don't need to become an expert in pension types.
But it helps to know roughly what you're dealing with, especially if you're checking through old pensions from previous jobs.
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The most common type today.
You (and possibly an employer) pay in, it's invested, and what you end up with depends on contributions and investment performance.
Most workplace and personal pensions are this type.
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Sometimes called "final salary."
Instead of a pot, it promises a guaranteed income based on your salary and years of service.
These are less common now but still held by many people from older jobs - they need specific regulated advice before any transfer.
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A DC pension with more control over how it's invested, typically used by people who want a wider choice of investments than a standard workplace scheme offers.
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A type of workplace pension typically set up by directors of small or family-run companies, with more flexibility over investment - including, in some cases, the pension owning the company's commercial premises.
A more specialist option worth discussing directly if relevant to your situation.
Bringing scattered pensions together
TD Fact 📚
For the 2026/27 tax year, the full new State Pension is £241.30 a week (£12,548 a year) - and that's only with 35 qualifying years of National Insurance contributions. For many people, it's a foundation to build on, not a full retirement income on its own.
If you've built up a few pensions across different jobs, it's worth understanding what you actually have before deciding what to do about it - rather than leaving them where they are simply because dealing with it feels like a chore.
Reasons people look at consolidating:
One place to see everything, rather than several logins and old paper statements
Potentially lower or more transparent charges
One investment strategy instead of several disconnected ones
But consolidation isn't automatically the right move for everyone, and it's important to check before doing anything:
Older pensions can carry valuable guarantees - such as guaranteed annuity rates, or protected tax-free cash above the standard amount - that would be lost on transfer.
Defined benefit (final salary) pensions are a different category entirely. Transferring one away from a guaranteed income is a significant decision that, for most people, requires regulated advice specifically about that transfer before it can happen.
Some older schemes have exit penalties that could outweigh the benefit of moving.
The starting point is simply understanding what you've got - not assuming it should all be merged into one.
If you're a business owner or director
TD Insight 💡
A profitable business and personal financial independence are not the same thing. One doesn't automatically create the other - building income outside the business is usually a deliberate decision, not a by-product of growth.
Pensions work slightly differently when you own the company you work through, and it's worth understanding before deciding how to use them.
Employer contributions from your own company. Your company can typically make pension contributions on your behalf, in addition to anything you personally contribute. Depending on your circumstances, this can be a more tax-efficient way of moving money from the business to your personal pension than taking it as salary or dividends first - though this depends entirely on your individual circumstances and current tax rules, and shouldn't be assumed without checking.
Retained profit vs. pension contributions. A lot of directors build up cash in the company without a clear plan for it. Some of that could potentially be directed towards pension contributions instead of sitting as retained profit - but that's a decision that needs to weigh up the business's own cash needs, alongside your personal retirement position, not be made in isolation.
The annual allowance matters here. For the 2026/27 tax year, the standard annual allowance - the most that can go into pensions across all your schemes in a year while still getting tax relief - is £60,000, or 100% of your relevant UK earnings if lower. This includes your own contributions, employer contributions, and any third-party contributions combined. If your adjusted income is above £260,000, this allowance tapers down (to a minimum of £10,000). If you've got unused allowance from the previous three tax years, carry forward may let you contribute more in a single year.
This is genuinely one of the clearer expressions of turning today's business success into tomorrow's personal income — but it needs to be done properly, with the numbers checked for your specific situation.
Pensions alongside everything else you're building
A pension rarely sits in isolation.
Most people who come to us have a mix of things going on - property, investments, business value, ISAs, maybe cash sitting in the company - and the pension is only ever one piece of that picture.
The more useful question isn't "is my pension good enough on its own?" It's: taken together, are all of these things actually building towards the future income you want? The future lifestyle you want?
That's the thinking behind how we approach pension planning - not treating it as a product decision made in isolation, but understanding it alongside the rest of your financial position.
How Turkington Davis helps
As an adviser who's also run his own business for close to 20 years, Nick brings a practical understanding of both sides of this - the pension mechanics, and what it actually feels like to be juggling business decisions with your own long-term financial planning.
A typical starting conversation covers:
Where you are now - what pensions (if any) you already have, and what they're worth.
What income you're actually aiming for later in life.
Whether your current provision, employer contributions and any other assets are likely to get you there.
What practical next steps make sense - starting a pension, reviewing an existing one, understanding scattered pots, or looking at how company contributions could fit in.
There's no assumption that you need to have everything figured out before that conversation.
Most people don't.
The best time to plan your future income was yesterday
The next best time is today !
Whether retirement is decades away or just around the corner, every successful financial plan starts with a conversation.
FAQs: Pension Planning
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There's no single figure that applies to everyone.
It depends on the income you want later, what you already have in place, and how many years you've got to build it.
A useful starting point is working out the future income you're aiming for, then working backwards from there, rather than picking a contribution amount first.
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The standard annual allowance is £60,000, or 100% of your relevant UK earnings if lower.
This covers personal contributions, employer contributions and any third-party contributions combined.
It reduces for adjusted income above £260,000, down to a minimum of £10,000.
Unused allowance from the previous 3 tax years may be available through carry forward.
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Sometimes, but not automatically.
Some older pensions carry valuable guarantees or benefits that would be lost by transferring, and defined benefit (final salary) pensions in particular need specific regulated advice before any transfer.
The right first step is understanding what you actually have before deciding what to do with it.
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Pensions are usually treated differently from other assets when it comes to who receives them and how they're taxed on death, and the rules in this area are changing.
From April 2027, most unused pension funds and pension death benefits are expected to be brought within the scope of Inheritance Tax.
This is a developing area and worth discussing directly given your circumstances, as the detail will affect people differently.
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Check a recent statement or ask your provider - it should say whether it's Defined Contribution or Defined Benefit. If you're not sure, it's worth checking before deciding what to do with an old pension (see "types of pension" above).
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Most people can currently access private pensions from age 55, rising to 57 from 2028, though this depends on the specific scheme and current government rules, which can change.
The State Pension has a separate, later age that's being phased upward - check your own State Pension age on GOV.UK.
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Not necessarily one or the other.
Most people end up using a combination, and the right mix depends on your goals, timeframe and circumstances.
Pensions have particular tax advantages that property and investments don't, but they also come with different access rules.
This is usually a "what combination" question rather than a "which one" question.
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Generally, yes.
Company (employer) pension contributions are common for directors and are usually made in addition to personal contributions.
Whether this is the most tax-efficient way to use company funds in your specific situation depends on your circumstances and current tax rules, and should be checked before acting.
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A profitable business doesn't automatically create personal retirement income - the two aren't the same thing.
A pension is one way to build income that exists independently of the business, which matters if the business is ever sold, changes, or simply stops generating the income it does today.
Whether a pension specifically is the right vehicle depends on your individual circumstances.
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Your 1st consultation is free so you can tell us about your goals, ask any questions your may have and find out how we work.
There's no pressure and no obligation to move forward afterwards.
It's simply an opportunity to explore whether financial planning could help you build greater confidence about your future.
The cost of financial planning depends on the type of advice you need and the complexity of your circumstances.
At Turkington Davis, we believe in being completely transparent about our fees.
We'll always explain any costs clearly before you decide to proceed, so you'll know exactly what to expect with no hidden surprises.
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We'd be delighted to help.
If you can't find the answer you're looking for, simply get in touch or book a complimentary Financial Planning Consultation.
We'll be happy to answer any questions and help you decide whether financial planning is right for you.
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Helpful External Resources
Money Helper - Visit MoneyHelper for free financial guidance
FCA - Find out more about financial advice, consumer protection and choosing an authorised adviser.
Pension Wise - If you're aged 50 or over and have a defined contribution pension, Pension Wise offers free government-backed guidance to help you understand your options.
HMRC - View the latest HMRC guidance
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The value of pensions and investments and the income they produce can fall as well as rise, and you may get back less than you invested.
The benefits to the treatment of tax depend on your individual circumstances and may change in the future.
This information is for general guidance only and does not constitute personal financial advice.