Currently there is a savings gap of £27 billion representing a shortfall in payments to fund realistic pensions for the majority of people in retirement. The Government still encourage private investment into pension funds by offering tax incentives. Higher rate tax payers qualify for 40% relief on payments made into personal pension arrangements, whilst basic rate tax payers pay net of tax relief.
If your employer does not provide a company scheme, consideration may be given to commencing either a Personal Pension or a Stakeholder Pension. Individual Personal Pensions provide a huge variety of investment funds to choose from, whilst Stakeholder Pensions introduced by the Government in 2001 were designed to offer a low cost means of providing income in retirement. They can also provide the ideal start for your children. We aim to show you how to get tax relief at source and build an income for yourself or your children’s future or we can regularly review your pension options and expectations to ensure your retirement plans are on track. Please contact us now.
Individual Pension Arrangements
Tax free cash up to 25% of the final pension fund is available and can be used to reduce mortgage debts or pay for that dream around-the-world cruise.Stakeholder Pensions
Since the link between income and the ability to make a pension contribution has now been broken, for some this presents a further planning opportunity; for individuals keen to commence saving towards their future retirement, but seeking a low cost contract, a Stakeholder pension plan may be an ideal. Parents and Grandparents can also take advantage of tax relief and give their children and grandchildren a kick start in life by paying into their Stakeholder Pension.Property Acquisition via pension funds - Self Invested Personal Pensions (SIPPS)
Since the 6 April 2006, A. Day, the rules governing the purchase of property via pension schemes have changed. Although the purchase of commercial property is still permissible, the borrowing regulations have become more restrictive.
Levels, bases of and reliefs from taxation may be subject to change.
