For Bankers

Making hay while the sun shines

We often talk about making hay while the sun shines and that couldn’t be truer when it comes to planning the finances for high-earning Bankers, Asset Managers and those in Fund Management.

The past decade has certainly seen a shift away from the halcyon days of “banker bonuses” and “Employee Benefit Trusts” towards a more sustainable model of increased basic salaries and bonuses paid as a combination of stock and cash. It is also true that annual remuneration in the Banking sector is still hugely varied.

With the credit crisis of 2008 still clear in our memories and redundancy still common place in the sector, job security is sadly not something that many of our clients feel. Tax planning instruments such as pensions have also become less attractive for high-earners.
Since 2010/2011, the annual pension allowance has been reduced by 98%, thus removing the ability for Bankers to contribute part of their bonuses into pensions and receive 50% tax-relief. This is further magnified by a 40% reduction in the pensions lifetime allowance. Like so many industries, technology is affecting the human role, creating uncertainty in both earnings and career longevity.

Sadly, none of this makes for happy reading but these are the challenges that our client’s face.

By simulating their futures, we alleviate the worry of uncertainty.

As well as looking after the day-to-day financial basics, the basis of our work for Bankers lies in financial projection. We use bespoke financial models to chart current income and expenditure against their financial objectives/liabilities to forecast future finances.

This planning tool provides individuals with the detail needed to understand their financial position and provides us with the data we need to create a robust and efficient financial strategy.
With such penal tax rates and reducing allowances, we help to maximise efficiency in the good years.