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.'