Tag Archives : pensions

Front-Load your Pension and Your Life – Saving in your 20s is the greatest pension trick

Pensions savings seem to be all the fuss of late. Many people in their 40’s and 50’s have come to realise that they have just not saved enough and will have to put off retirement for a few years in order to work and save more. Even though these people are socking away thousands a month into their retirement accounts, they have found that it is not enough. The biggest reason for this is they did not start early enough. They have not let time do the hard work by compounding their returns. Did you know that those who save for just 10 years, between the ages of 25 and […]

Saving in A Pension (SIPP) VS a Lifetime ISA (LISA) for retirement? Which is better 2

With the recent introduction of the Lifetime ISA (LISA), the whole debate about whether to save and invest for retirement via a typical pension plan (SIPP) or LISA has erupted again. The main proponents for SIPPS say that is allows you to withdraw your money at an earlier age and it is particularly beneficial in a financial sense for higher and additional rate taxpayers. Advocates of the LISA on the other hand say that it offers more flexibility as it can be used to fund a property purchase and it also makes more financial sense for a basic rate taxpayer to save their money using this. Here, we look solely […]

How to Claim Tax Relief on Pension Contributions 1

When you put money into a pension, you are able to get the tax back, also called tax relief, on the amounts you have contributed into the pension. You can get relief on your contributions by either of the three methods listed below taking into account your annual allowance. (To read more on annual allowance, read my article on How Pension contributions and the Annual Allowance Work). There are three methods by which a member can get tax relief. They are: Through a net pay arrangement. By claiming relief at source. By making a claim to HMRC. They all result in members getting tax relief on their contribution at the highest […]

How Pensions Contributions work and the Annual Allowance 3

To encourage retirement savings, government offers tax incentives when you contribute to a pension scheme. What contributions apply for pensions relief? Most contributions to a registered pension scheme qualify for tax relief and are referred to as qualifying contributions. Qualifying contributions can be made by: a member (or other person on behalf of a member) an employer. (Also Read ‘How to claim relief on Pension contributions‘). Member contributions A member of a registered pension scheme may make unlimited contributions to the scheme during a tax year, as long as the scheme rules allow it. Other persons may also contribute to a registered pension scheme, as long as it’s for a […]