AdviceOnline | Pensions
Pensions
For some people their retirement years are a golden era when they have the time and financial resources to fulfil plans to relocate treat the grandchildren and take frequent or extended holidays. For others despite an apparently comfortable financial position retirement is a time to scrape by on a much reduced income.
With the state retirement age set to increase to 68 from 2050 and the state pension currently providing an income of up-to £5077 pa or £97.65 a week for a single person and £8200 pa or £156.15 a week for a couple in 2010/2011 there is a general feeling that to have the retirement you want and expect you would have to have some form of employer or occupation pension scheme or if one is not available make private contributions and not rely on the state pension that is currently available.
Contributions into registered Pensions attract tax relief at your highest tax rate. Payments are made net of basic rate tax so every 100 invested only costs you 80. If you are a higher rate taxpayer for every 100 that you pay into a pension this costs you 60. The extra tax relief is reclaimed via your tax return. You are normally not permitted to take any benefits from your pension until age 55 50 up to 2010 and don't forget that under current guidelines you can take up to a quarter of your fund as a tax free lump sum to spend as you wish.
Retirement Contributions are limited to your relevant UK earnings or the annual allowance which is currently £255000 in the tax year 2010/2011. Any contributions above these and you could be penalised with a 40% tax charge! This annual allowance changes to £50000 after 6 April 2011 and you also have the ability to 'carry forward' any amounts of the annual allowance below £50000 from the last three tax years.
The way in which you invest into your pension fund and the level of income in retirement varies and depends on a number of factors including your risk profile age to retirement returns within the chosen fund and the way in which you take the payments. With a vast number of funds and providers to choose from there is a pension strategy to suit most people. We can provide access to an Independent Financial Adviser who can fully assess your retirement needs and recommend a pension plan to suit you. Even if you have current pension arrangements it is always beneficial to review these arrangements as your circumstances are likely to change as you get closure to retirement. Complete the enquiry form opposite and an adviser will contact you.
Remember that any tax relief received is dependant on your own particular circumstances and can change in the future. Investment returns from any investment can go down as well as up and the return is not guaranteed.
An Independent Financial Advisor can review your existing arrangements and advise on ways to provide retirement income that comes as close as possible to maintaining your pre-retirement living standards.
With the state retirement age set to increase to 68 from 2050 and the state pension currently providing an income of up-to £5077 pa or £97.65 a week for a single person and £8200 pa or £156.15 a week for a couple in 2010/2011 there is a general feeling that to have the retirement you want and expect you would have to have some form of employer or occupation pension scheme or if one is not available make private contributions and not rely on the state pension that is currently available.
Help and Advice
Contributions into registered Pensions attract tax relief at your highest tax rate. Payments are made net of basic rate tax so every 100 invested only costs you 80. If you are a higher rate taxpayer for every 100 that you pay into a pension this costs you 60. The extra tax relief is reclaimed via your tax return. You are normally not permitted to take any benefits from your pension until age 55 50 up to 2010 and don't forget that under current guidelines you can take up to a quarter of your fund as a tax free lump sum to spend as you wish.
Retirement Contributions are limited to your relevant UK earnings or the annual allowance which is currently £255000 in the tax year 2010/2011. Any contributions above these and you could be penalised with a 40% tax charge! This annual allowance changes to £50000 after 6 April 2011 and you also have the ability to 'carry forward' any amounts of the annual allowance below £50000 from the last three tax years.
The way in which you invest into your pension fund and the level of income in retirement varies and depends on a number of factors including your risk profile age to retirement returns within the chosen fund and the way in which you take the payments. With a vast number of funds and providers to choose from there is a pension strategy to suit most people. We can provide access to an Independent Financial Adviser who can fully assess your retirement needs and recommend a pension plan to suit you. Even if you have current pension arrangements it is always beneficial to review these arrangements as your circumstances are likely to change as you get closure to retirement. Complete the enquiry form opposite and an adviser will contact you.
Remember that any tax relief received is dependant on your own particular circumstances and can change in the future. Investment returns from any investment can go down as well as up and the return is not guaranteed.
An Independent Financial Advisor can review your existing arrangements and advise on ways to provide retirement income that comes as close as possible to maintaining your pre-retirement living standards.
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