Super User

Super User

Wednesday, 20 March 2013 13:53

Can my employer contribute?

Yes, their payments would form part of your total contribution limits.

If you'd like your employer to contribute, just let us know and we'll send you a form making it easy for them to do.

Wednesday, 20 March 2013 13:52

Can I pay in more than £40,000 in one year?

Yes, but any contributions above this will normally be taxed.

You may be able to avoid this by carrying forward any unused annual allowance from previous tax years. There are some rules around this, you can only go back three years, you must have been a registered member of the scheme in the tax year you are carrying forward from and you can only carry forward up to the £40,000 limit in each tax year.

Don't forget this includes any contributions from an employer and increases in value of any other pension savings you may have.

If you'd like to find out more about this, click here to check the latest information on the HM Revenue & Customs website and seek advice from a tax specialist or financial adviser before investing - to ensure you don't incur tax charges you weren't expecting.

Wednesday, 20 March 2013 13:51

How much can I pay in?

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.

Wednesday, 20 March 2013 13:50

How much can I save?

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.

Wednesday, 20 March 2013 13:50

Taking your pension benefits

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.

Wednesday, 20 March 2013 13:49

Who can invest in a personal pension?

You can get a personal pension whether you're employed, self-employed or out of work as long as you are:

  • 16 or over
  • A UK resident
  • Happy to leave your money invested until you retire

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.

The annual individual savings allowance has changed.
The 2012/2013 Cash ISA limit is £5640 with the overall annual ISA limit being £11,280.

The deadline to use the 2011/2012 ISA allowance is 5th April 2012.

From April 6th 2012, ISA limits will increase in line with the Retail Prices Index (RPI).

Wednesday, 20 March 2013 09:43

Endowment Policies Explained

An endowment policy is a savings and life assurance policy for an agreed period, the minimum term being 10 years. A tax free benefit is normally paid out at maturity or on earlier death.

The policyholder may sell the policy in the traded endowment market, as an alternative to surrender before the end of the term, although this must be carefully considered as financial penalties will often apply.

Wednesday, 20 March 2013 09:43


Open ended investment companies were introduced into the UK in 1997, from Europe.

Open-ended means shares in the fund will be created as investors invest and cancelled as they cash in. Closed-ended funds like investment trusts have a fixed number of shares to be bought and sold.

OEICs have a structure somewhere between an investment trust and a unit trust.

Wednesday, 20 March 2013 09:43

Unit Trusts

A unit trust reduces your risk of investing in the stock market by pooling your savings with thousands of others, and then spreading the money across a wide range of shares or other types of investment.

Unit trusts are also cost effective, charging a fraction of what it would cost you to invest in a broad basket of shares by yourself.

*Please note we have updated our email address and trading style to LenRose Wealth Management but still under Active Financial Partners Ltd and part of the Harwood Wealth Management Group PLC.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

Jonathan Hales

Independant Financial Advisor

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T: 01795 477744

M: 07886 516087