General Pension Information
With the continued news reports suggesting that the basic state pension will no longer suffice for the majority of UK tax payers, it is important to consider your pension requirements. Many of us want to enjoy early retirement, commonly selecting a retirement age of anywhere between 55 and 60 years of age.
Investing in Pensions has always been encouraged by the UK Government, who have provided incentives for the UK taxpayer to do this. Dependent on your choice of pension, the government provides tax relief on Pension Payments at the rate of tax paid in that year. This can have a significant effect on the value of your pension later on.
For every pound that you pay into a pension scheme, the UK Government gross this up based on the basic rate of income tax, thus potentially increasing your pension investments.
By paying more into your pension fund, you can effectively reduce your tax payments. Pensions grow the fastest thanks to early premiums, as these attract growth for far longer than payments made later on. It is wise to begin your pension contributions as early in life as possible, as early payments into your fund will have the biggest effect on the final outcome of your policy.
Other investments are also available, and these, if done appropriately, can also provide good returns on your initial funds, depending on the level of risk you are prepared to take.
For more advice about any pension, investment or financial situation, you can speak to an Independent Financial Adviser. HW Financial Services Limited provides this service via our national network of office. For an introduction to arrange a consultation, please contact your local office.
HW Financial Services Limited are Independent Financial Advisers, authorised and regulated by the Financial Services Authority and owned by Bestinvest (Holdings) Ltd. This webpage has been produced for the general information of our clients. It is based on our understanding of current legislation and is intended to provide a brief summary thereof. It is not intended to give personalized investment advice and you should contact us or them before taking any action based on the information therein. You should be aware that where past performance is quoted for specific funds or asset class sectors (such as property funds) it is not a guide to future performance and that the value of unit-linked investments is not guaranteed. As unit prices can go down in value as well as up you may not get back the full amount of your investment. All statements concerning the tax treatment of products and their benefits are based on our understanding of the current law and HM Revenue and Customs practice and are for general guidance only. Whilst every effort has been made to ensure accuracy, no liability can be accepted for any errors or omissions. Levels and bases of, and reliefs from, taxation are subject to change.