LGBT Money. Registered office: 6th Floor,

53 Bothwell Street, Glasgow G2 6TS 

Address for correspondence: LGBT Money, 10 Melville Street, Edinburgh EH3 7NS.

Company number: SC355522

© 2019 by LGBT Money

LGBT Money does not offer you personal financial advice. But we know some of the best advisers walking the planet and by registering with our site we can introduce you to them. For your own safety* and peace of mind** you should only ever take personal financial advice from an authorised and regulated financial adviser.

*Only authorised and regulated advice is covered by the Financial Services Compensation Scheme ** Only authorised and regulated advisers are covered by the Financial Ombudsman Service

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PENSIONS

Even if your pension age is a significant double-digit figure away in years you will benefit from getting this aspect of your financial life sorted. The state pension won’t keep anyone in Dries van Noten.

Taking control of your pensions is the answer, allowing you to build up sizeable retirement pot so you can enjoy your later years in comfort.

As well as pensions you may be offered through work, personal pension plans are available and because the government wants to encourage us to be responsible, it chips in when you do.

Under Pension Relief at Source (PRAS as it’s known) your payment into your plan is net of tax but the amount credited is the gross amount. This benefits you whether you are an employee or self-employed, at the highest rate of tax you pay. If you are a higher rate tax payer then, for every £100 invested, the tax relief may be up to 40%.

It is literally the government giving you money. It seems rude not to accept. Over the years the figure - beyond your initial investment - donated by government is likely to inflate your pension pot very nicely.

 

​If you’re part of a employer-sponsored scheme then your employer makes contributions on your behalf. You may receive an offer to take your pension as a capital lump sum. Sounds tempting? It's well worth considering but there are some scary tax implications, so please take advice before acting.

Should you consolidate your pensions? Your Financial Planner will walk you through this.

 

Another key issue concerns who you nominate to benefit from your pension in the event of your death.

​Your Financial Planner will help you, so that your partner can be the beneficiary whether you are in a civil partnership or otherwise.
 

'Personal pension plans have only been available since 1988 and because the government want to encourage us to be responsible, it chips in when you do.'