You can pay in anything from £1 upwards. You get tax relief on everything you put away, up to 100% of your annual earnings (subject to an upper annual allowance of £50,000). If you are able to save more than £50,000 a year, you don't get tax relief on payments above that, in fact you will be taxed on them. If you have unused annual allowance from previous tax years, you may be able to pay in more than this. Please see below.
A little now makes a big difference later- the golden rule is to invest the most you can afford, and the earlier you start the better. Even a modest amount saved now can make a big difference later.
You get tax relief on everything you put away, up to 100% of your annual earnings (and also subject to an upper annual allowance of £50,000*).
Even if you're not earning you can still pay into your personal pension, and get tax relief on up to £2,880 of contributions each year.
*Please note, you don't get tax relief on payments above £50,000, in fact you will be taxed on them. If you have unused allowance from previous tax years, you may be able to pay in more than this. To find out more, please see Questions & Answers. Also remember, this information is based on our current understanding of taxation law and HM Revenue & Customs practice in the UK. The amount of tax relief you receive depends on your personal circumstances and may change.
Firstly you can't get your hands on your pension until you're at least 55 years old, which is good because it gives you time to build up a bigger pension, without the temptation to dip into your savings.
When you take your benefits you can normally choose to take up to a quarter of your benefits as a tax-free cash sum.
You'll need to use the rest of the money you've saved in your pension to buy an annuity. An annuity is an investment that guarantees to pay you a regular income for the rest of your life, no matter how long you live.
Please remember, the amount of income provided by your pension will depend on a number of factors, including investment returns and annuity rates when you retire.
You can get a personal pension whether you're employed, self-employed or out of work as long as you are:
If you want to retire on more than the state pension but don't have a company pension at work, a personal pension is a great option.
Independant Financial Advisor
T: 01795 477744
M: 07886 516087