You can normally take up to a quarter of your savings as a tax-free cash sum. The rest is used to buy you an income in retirement, called an annuity.
The earliest you can currently take your pension is your 55th birthday.
They will be paid to the beneficiaries you named on your application. If you need to update your beneficiaries at any time, please contact us.
Even if you're not earning you can still pay into your personal pension and receive tax relief on up to £2,880 of payments each tax year. You can pay in more than that if you wish but you won't receive tax relief on the extra amount.
If you can no longer spare the money you can stop your payments into your pension. You can start saving again whenever you're ready.
If you're off work but are still being paid (e.g. paid maternity leave or sick leave), you can continue to pay into your pension and you'll still receive tax relief on your payments (on up to 100% of your annual earnings and also subject to an upper annual allowance of £40,000). If your employer is paying into your pension, you'll need to check with them whether they'll continue to contribute while you're off work.
If you have time away from paid work, remember you can stop payments into your personal pension if you need to. You can start saving again whenever you wish. If you do make payments into your pension you'll still receive tax relief on up to £2,880 of payments each tax year, even if you have no earnings for that tax year. You can pay in more than that if you wish but you won't receive tax relief on the extra amount.
The first thing is to find out if your new employer offers a company pension, and whether they contribute to it. If so, you should join, so you don't miss out on any payments they're offering. You can also keep your personal pension, and keep paying into it if you wish.
If you become self-employed or your new employer doesn't offer a pension scheme, it's a good idea to keep paying into your personal pension so your retirement savings stay on track.
Whatever you choose to do, please let us know if you've changed jobs.
Whether you are employed, self-employed or not employed, we claim basic rate tax relief for you and invest it in your pension.
If you pay income tax at the higher rate (or additional rate that applies for those with an annual income above £150,000) you can claim any extra tax relief you are due from the HMRC in your annual tax return.
Yes, you can. But if you haven't started a pension yet and are hoping to retire within five years time, we strongly recommend you seek independent financial advice, so you can decide on the best options available to you at this time.
Yes, you can transfer other pensions into a new pension, however, you would need to make sure it was the right thing for you to do. If you would like more information please contact us.
Yes, you are allowed to save in as many pensions as you like. There used to be rules concerning company directors and occupational schemes and salary limits, but these have now been removed.
If you already have a pension which you could make further contributions to, you should speak to an IFA.
Independant Financial Advisor
T: 01795 477744
M: 07886 516087