Adding your savings into a pension scheme could mean they are boosted by at least 20%
Did you know, the more you save into your pension, the more help you’ll get from the government?
The government encourages pension saving by giving tax incentives, known as tax relief – making pensions one of the most tax-efficient ways to save for your future. The way it works is as follows.
When you save into a pension, the government gives you a bonus as a way of rewarding you for saving for your future. This comes in the form of tax relief.
This means that some of the money that you would have paid in tax on your earnings goes into your pension pot rather than to the government.
Tax relief is paid on your pension contributions at the highest rate of income tax you pay. So:
- Basic-rate taxpayers get 20% pension tax relief
- Higher-rate taxpayers can claim 40% pension tax relief
- Additional-rate taxpayers can claim 45% pension tax relief
Our latest money guide shows you just how it works. To read or download it, simply click on the link below.
In these uncertain times, it’s more important than ever to be thinking about planning for your future – and getting a boost to your savings of at least 20% is something not to be ignored.
So, if you would like to discuss how you can save more for retirement and benefit from tax relief in the process, please contact us today.