Retirement Provision
Pensions are still one of the most effective vehicles for saving for old age. Under current tax regulations, tax relief is available on the monthly contribution. Standard rate taxpayers have the relief granted at source which means they only pay the net amount to the pension provider who in turn recover the tax element from the revenue. If you contribute £100.00 per month only £80.00 is taken from your bank account and the Inland Revenue make up the difference. For higher rate taxpayers, the difference between standard rate and higher rate is reclaimed from the revenue.
The ability to reclaim tax makes pension investment one of the most efficient methods of saving for old age.
The essence of pensions is that during your working life you build up a ‘pot’ of money to be used at retirement. The ‘pot’ of money is applied at retirement to purchase a pension but the Inland Revenue currently allows part of that pot to be taken as tax-free cash. As a rule of thumb the tax-free cash amounts to 25% of the accrued fund. At retirement you can shop around to find the best deal for your pension purchase. You do not have to buy the pension from the provider with whom you have built up your fund.
It follows therefore that whilst you are building your pension fund you need advice as to where your contributions should be invested and with whom in order to obtain the best return.
We will guide you through the complexities of arranging a pension and to obtain further information, click on the link below to take you to our contact page.
Please contact me about Retirement Provision. |
