Maximising Your Pension
The generous tax reliefs allocated within pension arrangements means that they play an important role in tax planning. Personal contributions to a pension currently qualify for Income Tax relief at the individual’s highest marginal rate and can also indirectly provide other tax advantages. For example, using the Tapered Annual Allowance, carrying forward unused reliefs and optimising Lifetime Allowance protection opportunities.
“People who earn between £100,000 and £122,000 should look for ways to escape the 60% tax rate by getting their taxable income down to £100,000. Making a pension contribution is an excellent way of doing this since it is deductible in calculating income,” says Ian Price, Divisional Director at St. James’s Place.
The value of a pension with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances.
Brief guide to achieve your retirement goals
You can pay in a regular amount or make a one-off lump sum payment.
Other people can also make a contribution on your behalf – employers, partners or other family members can help you save for your retirement.
You can pay into a pension for someone else, for example your children (age restrictions apply).
It is flexible – you can change the amount you pay in, and also pay lump sums if you wish.
If you die before you retire, the value of your plan could be paid as a cash lump sum to your beneficiaries.
The amount of tax relief you’ll receive depends on your individual circumstances.
If you would like more information, please contact Wellesley Wealth Advisory on 01444 244 551 or via email at email@example.com