Saving for your future…
It is no secret that the country’s finances are in a poor state and this is likely to continue for years to come. The State pension is costing the Exchequer more and more, and with life expectancy increasing and a static birth rate, there will be more and more pensioners relying on a smaller and smaller workforce. There is therefore likely to be less and less State money to go around.
It is vital that we make additional provision to increase our income in retirement and the most effective way of doing this is through a private pension. To encourage us to save for retirement the Government offers some generous tax breaks on our pension contributions. Basic rate taxpayers receive tax relief at 20%, higher rate taxpayers receive 40% relief and additional rate taxpayers receive 45% relief (subject to limits). We do not get many gifts from the taxman, so it makes sense to take advantage of the most tax-efficient way of investing there is, especially with the new range of low-cost, flexible pension plans now available.
The sooner you start making pension contributions the better, even though retirement may seem a long time away. Those contributions you make in the early years can make an enormous difference to your life in what is, after all, the longest holiday you will ever have. There are a number of different pension plans available and we can advise you on which is most suitable for you, how much you should save into it and the types of investment fund you should consider.