Retirement Planning
Please note that the content on this page does not reflect any changes to SIPP announced in the 2009 budget.
You’ll spend almost a third of your life in retirement – how do you plan to spend those retirement years?
However you answer that question, you can be sure that your ability to spend a long and fulfilling retirement – doing the things you’ve always planned to do when you stop work – will depend partly on how well you build up your assets now. Even if your retirement isn’t on the near horizon it’s never too early to start planning – in fact, the earlier the better.
And a pension is one of the most effective ways to save for your future because of the tax benefits you can enjoy. Consider all of these:
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Tax relief – taxpayers can claim tax relief at their highest rate on their pension contributions.
Up to 100% of annual earnings or £235,000 a year (for the 2008/09 tax year), whichever is lower. - Even non-taxpayers get basic rate tax relief on pension contributions of up to £2,880 net per tax year, taking the value of these contributions to up to a maximum of £3,600 gross each year
- Tax-free growth – your pension fund grows free of income tax and capital gains tax
- Tax-free lump sum – up to 25% of your pension fund can generally be taken as a tax-free lump sum from age 55 onwards (or age 50 until 5 April 2010).
- So for every £80 of your earnings net of tax you put into your pension in 2008/09, the government will give you tax relief worth at least £20, which takes the total investment into your pension fund to a gross £100.
- And higher rate taxpayers can gain further relief of £20 (2008/09) through their self assessment tax returns.
Whether you’re new to retirement investing, or want to make sure your existing pension provision is working as hard as possible for you, we aim to give you the information you need to understand your options.
Our Retirement Planning Centre takes you through:
- the main products you can use to save for your retirement
- the tax reliefs and allowances you’re entitled to for your pensions savings
- your options when you come to take your pension or retirement benefits
- and a whole host of other pensions-related information, such as how to contribute to a pension for your spouse or a child.
Find out more about:
Did you know?
Over 13 million people in the UK are either not saving enough, or not saving at all, for their retirement – that’s almost half the UK working population (Source: ABI, November 2008). The average length of retirement has risen from just over 8 years in 1950 to almost 20 years in 2007, due to greater life expectancy and earlier retirement ages – so retirement savings have to stretch a lot further than they used to on average.
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Although we have taken all reasonable care to ensure that the information provided in the Retirement Planning Centre site is accurate, we give no warranties of any kind, express or implied, with regard to the accuracy or completeness of any such information. This site may also contain some material provided by third parties and we accept no responsibility or liability for the accuracy of such material, whether in contract, tort or otherwise.
Barclays Stockbrokers does not provide investment advice. If you are unsure of how the information provided relates to you or the most appropriate course of action for you, you should seek financial advice.
