Personal Financial Services
An Individual Pension is an extremely tax efficient investment vehicle which is designed to build up a fund to be used to support you in retirement. As a result once invested the monies cannot be accessed until you reach the age of 55 (except in instances of ill health or by payment of pre-retirement death benefits).
Contributions can be made to these plans on an ad hoc or regular basis by you and/or your employer. Your personal contributions would benefit from basic rate tax relief so effectively an £80 net contribution equates to a £100 gross contribution into your pension fund. Higher rate tax payers can also reclaim a further 20% or 30% on these contributions via self assessment.
The maximum level of personal contributions that can be made each year and receive this tax relief is restricted to the higher of £3,600 or your gross pensionable earnings; the latter of which is capped now at the revised £50,000 annual allowance limit which also will include any employer contributions made.
The monies contributed grow free of all Capital Gains Tax within the plan and also all Income Tax, except for the 10% non reclaimable tax credit on dividends.
Despite some of the restrictions above the generous tax advantages these plans offer still make them one of the most popular methods by which to fund for retirement. There are the following main types of individual pensions available that cater for different funding levels, investment and retirement income requirements:
For more information or advice on Personal Pensions, please contact us or request a call back.
Make an enquiry
