Money From Pension

Money From Pensions provides advice only after conducting a thorough analysis of your needs and circumstances, working with you to find the best way forward. Therefore you can be sure that any recommendations made are tailored and specific to your situation. Money From Pensions consultants are suitably qualified and authorised to provide regulated advice and will show you the best options available taking into account your circumstances. Money From Pensions is impartial and conducts extensive research of the market to ensure that you are provided with the most appropriate advice. Saving for retirement is something that most of us put off for as long as we can. But the reality is that the sooner you start paying into a pension the better your income in retirement is likely to be. Pensions are long-term investments with special tax rules – for example, contributions currently qualify for Income Tax relief at your highest rate. You can\'t access the money in your pension until you reach age 55. Some schemes have additional rules about when you can take your benefits – check with your scheme provider. Contribution Levels and Tax Relief Tax Relief Contributions paid by you to a personal pension plan made net of basic rate tax (i.e. 20%). This means that for every £100 you want to save, you only pay £80. Tax relief of £20, topping your contribution up to £100, is then added by HM Revenue & Customs (HMRC). If you are a higher-rate tax payer (i.e.40%), you may able to claim additional tax relief. Depending on how much you earn over the higher rate tax band, any additional tax relief would range between a further 1% up to a maximum of 20%. From 6 April 2011, if you are an additional-rate tax payer (i.e. 50%), you may be able to claim additional tax relief at your highest rate. Depending on how much you earn over the higher rate tax band, and your level of contribution, any additional rate tax relief would range between a further 1% up to a maximum of 30%. Limits The maximum amount you can contribute to a personal pension plan or stakeholder pension scheme, and on which you can receive tax relief, is 100% of your earnings or £3,600, whichever is greater. The Annual Allowance is an annual limit set by HMRC Contributions paid in excess of this amount are unlimited but will give rise to a tax charge on the pension scheme member. The Annual Allowance for the tax year 2011/12 is £50,000, inclusive of your own contribution and any other amounts paid into an approved pension scheme. So let us help you find the pension which is right for you. There are three main types of non-State pension. They are:- Occupational salary-related schemes - offered by some employers; Occupational defined contribution schemes (also called money purchase pensions) - offered by some employers; and Stakeholder pensions and personal pensions - offered by some employers, or you can start one yourself. You may also be offered a group personal pension at work. These are also money purchase pensions. What are the benefits? Although you don’t have to join any pension scheme offered through your job, it’s usually a good idea to join an occupational pension scheme if it’s available because:- your employer normally contributes; and often you also get other benefits, such as: life insurance which pays a lump sum and/or pension to your dependants if you die while still in service; a pension if you have to retire early because of ill-health; and pensions for your spouse and other dependants when you die
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