For Lawyers

Moving from newly qualified through to managing or senior associate positions.

As a salaried employee, income typically increases at a set rate via lock-step. Planning focuses on creating a savings strategy for increasing disposable income in preparation for major life events, such as purchasing a first property.

After being made-up, an early-stage Partner will typically transition into self-employment, losing PAYE employee benefits.

Paid via fixed drawings and periodic distributions, income continues to be predictable. As income increases so too does tax liability, and financial modelling becomes paramount as major life events start to occur.

Focus also turns to pension planning, in particular considerations around contributions and annual allowance. The removal of death-in-service life cover results in the need to insure independently.

Often the final career stage, a Partner is admitted into the Equity Partnership.

Whilst fixed drawings are still often paid, income now loses much of its predictability with remuneration being derived from corporate profit share. We often refer to these payments as distributions. Having created significant wealth, focus typically turns to retirement planning, wealth preservation and the transition of assets to the next generation.