There is no need to panic if you have not been making adequate pension provision. There are many ways to make up at least some of the lost ground - but it does mean that you can't afford to lose any more time.

Spoilt for choice
Although not the only method, the most tax-efficient vehicles to save for retirement are almost certainly pension schemes. They attract tax relief at your highest rate and pension funds grow in a tax-efficient environment.

In addition to the basic personal and occupational pension schemes, there is a wide range of other private pension options available. Different types of scheme obviously suit different types of investor. There are a variety of ways to boost your pension income, increase investment flexibility and tailor your pension provision to fit your employment status.

The main consideration for building a bigger retirement income is driven by your employment status. If you are employed and a member of a company pension scheme, you will have different requirements than if you are self-employed and contributing to a personal pension arrangement.

So where do you start? Take a look at some of the options available to you.

AVCs and FSAVCs
Anyone in an occupational pension scheme can contribute up to 15% of his or her taxable income to the pension, but few schemes take anything like this much from employees. For occupational pension scheme members, additional voluntary contributions (AVCs) are the main pension top-up option. AVCs are individual pension contracts, usually run by an insurance company on behalf of the employer.

New rules now permit members of money purchase pension schemes to take AVC benefits at any time between the ages of 50 and 75, regardless of when they take their benefits from the main scheme.

Free-standing AVCs are available from pension providers independently of your employer, however they are not available for controlling directors. FSAVCs are typically more expensive than AVCs, but for some investors FSAVCs can be more appropriate.

Self-Invested Personal Pension (SIPP)
SIPPs give savers the opportunity of incorporating funds managed by different investment managers within one pension portfolio. This diversity is particularly attractive if you have a large fund and are considering using Pension Fund Withdrawal (PFW) products after retirement. With a SIPP, investments can essentially be segmented, using part for PFW with the balance being moved around at will.

A SIPP is a particularly useful vehicle if an individual or business wants to buy commercial property from which to carry out its business. Commercial property can be leased to a business. The rent paid to the fund is tax deductible and the fund receives the rent gross. Borrowing is also possible and banks will typically lend up to 70% of loan to value.

Small-Self Administered Pension Scheme (SASS)
A SSAS is an occupational pension scheme that can be used for a maximum of 11 members. One-member SSASs are popular arrangements with founding members of a business, owners and chief executives with 50% of the equity.

They are occupational schemes, but escape many of the investment restrictions of more conventional arrangements. In particular, a high degree of self-investment is permitted.

After an initial two years, plan holders can use up to 50% of their SSAS fund to invest in their own company. The fund can also make a loan to the company and purchase the business premises, leasing it back to the company on commercial terms.

For those who want a more conventional pension fund portfolio, the investment choice is very broad.

Funded Unapproved Retirement Benefit Scheme (FURBS)
FURBs are occupational pension schemes that allow members to secure pension benefits above the usual Inland Revenue limits. These schemes attract fewer tax breaks than approved pension schemes, but they can be very useful if you have fully funded your contribution levels up to the earnings cap.

Phased Retirement
This is a facility used by many retired people. You basically turn one pension contract into many smaller contracts, so that a series of annuities can be bought at different times. The advantage is that you can benefit from greater flexibility on retirement.

There are many different methods for building a bigger retirement income and this is certainly one of the most complicated areas of financial planning. Let us help guide you through the pensions maze - please e-mail or contact us for further information.