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Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Higher rate pensions tax relief survives the budget- but for how long?

In a pre-budget announcement MPs called on the Government to overhaul the “entire approach to pension tax relief”. They are concerned that the current system unfairly incentivises higher rate taxpayers.

They say:-

“Now is surely the time to address the imbalance of benefits and tax breaks available to the wealthy, whilst ensuring the poorer pensioners are protected from further financial difficulty”.

The Chancellor may find it difficult to ignore the views of MPs which would save the Treasury more than £20billion a year and could be popular with the bulk of the electorate.

If you are a higher rate taxpayer not already exploiting the current favourable tax regime you are missing a major opportunity that may not be there for long.

The rules are complex but broadly speaking the employed can contribute up to 100% of their earnings annually, less any existing contributions, and can go back three years to sweep up any unused relief.

Only last week I guided one client through the process of achieving a gross investment in his pension plan of £18750 at a net cost, after tax relief, of just £7500. Admittedly a special set of circumstances but it just shows what is possible. The money was previously sat in a Cash ISA earning next to nothing.

This particularly relevant to anyone approaching, or over, age 50. As you can access your pension fund at age 55 you are no longer having to tie your money up forever in order to benefit from the tax relief.

If you would like to know more just use this link to book a no-cost Zoom meeting and we will quickly find out whether it is for you.

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Retirement Risk Zone: If you are in what I call “The Retirement Risk Zone“ – the three years before retirement and the three years after – this is a particularly important time for you, so do please get in touch. Just use this link to book your Free Zoom chat. Make the wrong decision, or no decision, now and it could have a major impact on your lifestyle for the rest of your life.

How good will it feel to know that, at long last, you are on top of your retirement planning and can look forward to the future with confidence? Is it safe to do it alone or do you need someone with more than 40 years as a pension expert on your side?

 

 

IMPORTANT INFORMATION
This document and our ongoing services are not personal advice. We’ll give you all the help and guidance you need to make your investment and retirement decisions, but we can’t advise you. If you’re not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the “no advice” on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

 

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IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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