Still one of the most tax-efficient ways to plan for retirement, a pension has many advantages over other ways of saving for your future.
When you pay into a pension, you get tax relief. The amount depends on whether you are a basic-rate, higher rate or additional-rate taxpayer, but whichever you are, you will benefit from tax relief on your contributions, meaning extra money is being invested for your retirement.
For the most part, your pension fund grows tax free, and current rules allow you to take up to 25% of your pension savings tax free also. However, the remaining 75% is taxable when you take it. It is also worth remembering that taking the tax-free sum leaves less in your pension to provide you with an ongoing income in retirement.
Pensions can be complex, and making the right decisions is vital for the freedom you want later in life. This is why our pension advisers are here to help guide you through the pension planning process. We use our expertise to find the right solutions for your individual circumstances and goals, and work with you through every step of your retirement planning. So when the time comes, you can enjoy the lifestyle you have worked so hard for.