Retirement Planning

You will 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 have always planned to do when you stop work – will depend partly on how well you build up your assets now.

Even if your retirement is not on the near horizon it is 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:

• Tax relief – taxpayers can claim tax relief at their highest marginal  tax rate on their pension contributions, up to 100% of annual earnings or £245,000 a year (for the 2009/10 tax year), whichever is lower – although individuals with total income of £150,000 or more per annum may have tax relief restricted in accordance with new regulations for

- So for every £800 of your earnings net of tax you put into your pension in 2009/10, the government will add tax relief worth at least £200, which takes the total investment into your pension fund to a gross £1000.

- And higher rate taxpayers can gain further relief of £200 (20%, 2009/10) through their self assessment tax returns – provided the tax relief is not to be restricted in accordance with the new regulations for

• 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 from age 55 onwards (or age 50 until 5 April 2010).

 

Whether you are 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 are 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.