Planning for retirement is one of the most important decisions you will make. We all hope for a comfortable and financially secure retirement. It may seem fair to expect a financially sound retirement following a successful career, but the truth is that without good financial planning, hard work alone does not bring a secure future.
A private pension is a great way of saving for your retirement as the money you put in is invested and builds up so you can access this later in life. It is the primary method by which many people support themselves in their later years and to a large extent determines the quality of life they will have.
At the time you are able to take money from your pension pot, usually from the age of 55, the first 25% will normally be tax-free with the remainder being taxed as income.
There are different pension options that can best suit your own individual circumstances. Understanding your options gives you the confidence to make informed decisions and that is why it is good to seek independent financial advice.
What is Pension Tax Relief?
A further benefit is that you get tax relief on your pension contributions from the government. A basic taxpayer will receive 20% pension tax relief and a higher-rate taxpayer can claim 40%. For additional rate taxpayers, this will be 45%. Tax and reliefs will depend on your individual circumstances and tax rules can also change.
Why an Independent Financial Adviser?