Saving For Retirement

The government simplified the pension rules in April 2006, aiming for one set of rules for all. Everyone can now put aside their entire earnings (up to a limit of £215,000) if they wish to, and receive income tax relief on all the funds they save.

Furthermore, everyone in the UK can put aside £2,808 every year, with the government adding a further £792, even if they have no earnings at all. This means parents can give their children money to put into a pension scheme each year and retired people can invest the same amount and gain the same tax break whatever their circumstances, up to age 74.

Their is a cap on the total fund that can be built up but, for 2007-08, this is set at £1.6 million - unlikely to worry most people.

Saving for retirement is all about tax efficiency to help you build an income for the future. You receive tax relief on the money you put in, the money grows largely free of UK tax and, when you retire, you can typically take a quarter of the entire fund free of all tax, with the remainder being used to provide a potentially taxable income.

Because we are living longer it is likely that both our state and personal pension benefits will have to provide for us for longer. This means that we all need to save more for ourselves, The sooner we start the better.

If you are not currently saving for retirement or if you are not sure if you are saving enough, please contact us and we will be pleased to give you a no-obligation, free initial consultation

Whatever your circumstances Build Your Wealth can help you find the solution – and enjoy a better, more secure financial future.