Personal Pension
If you are not a member of an occupational pension scheme and you wish to make pension provision for yourself, you may choose to sve using a personal pension
What is a personal pension?
A personal pension is your own pension scheme into which any one between the ages of 0 and 74 and 11 months can make a contribution .
Do I get tax relief on the contributions?
20% tax relief is given at source. If you are a higher rate taxpayer you claim back the additional 20% via your tax return and your code is adjusted
How much can I invest?
The amount which can be invested is 100% of earnings up to a maximum of £50,000 (from April 2011) and it will be possible to carry forward unused reliefs from the three previous tax years. This calculation may be complex particularly if you have been a member of a final salary scheme. Nicholls Stevens will assist you in making this calculation
If you have no earnings It is possible to make a net contribution of up to £2,880. each tax year. this is grossed up to £3,600 by tax relief
When can I take benefits?
You can take the benefits at any time between age 55 and75
What benefits are avalable?
The amount of the benefit depends upon investment performance.A fund is built up from which at any time between age 55 and 75 a 25% tax free lump sum can be withdrawn plus an income for life
Choices you will need to make
Nicholls Stevens can help you make these choices
- You will need to chose an Insurance Company or Provider to run your scheme
- You will need to decide on an asset allocation based on your attitude to risk
- You will need to decide on the funds into which you will invest
You will need to decide how much you are prepared to pay the Insurance Company to run your pension scheme – it maybe that the cheaper Stakeholder Scheme may be right for you.
