Retirement Trust Scheme, (RTS) have been in existence since 2008 and are Jersey’s own home-grown pension product. Also known as RATs they are available to Jersey resident individuals offering a modern, flexible and value for money Retirement Planning Solution.
Don’t get too bogged down by the name, an RTS is really just an investment (or regular savings) plan which is set up by you, with the help of your financial adviser, so that you can save for retirement. The savings are tax efficient and because of this there are some restrictions on how much you can pay in and how you can take money out.
Some of the main features and benefits of an RTS are:
- You can tax efficiently invest up to £50,000 each year (subject to earnings) .
- Your employer can also contribute to your RTS without affecting your annual contributions limit.
- You can transfer in funds held from other pension schemes.
- You can start to draw money from your pension as soon as you reach age 50* without having to actually retire.
- You can take 30% of your accrued RTS investment as a Tax free cash lump sum at age 50*.
- You are not obliged to buy an annuity once you reach retirement age.
- The value of your RTS investment will pass, in full, to your estate if you die before retirement.
- The value of your pension will pass to your spouse or your estate when you die, subject to payment of tax under certain circumstances.
- The money held in your RTS is invested for your life rather until your intended retirement age so you are generally less exposed to investment market fluctuations at the point at which you choose to retire.
*This age is increased to 55 for any money which was sourced from a UK pension scheme.
To find out more email info@decarteretwealth.com or telephone 01534 860660.
