Yes I know I only wrote about this three weeks ago but people are now beginning to panic and wonder whether they have left it too late to take worthwhile action.
If you have the funds available the very minimum you should think about is bringing forward next year’s contributions (or maybe two or three years’) to before budget day – 16th March.
Most of the experts expect the maximum tax relief on pension contributions to be reduced to around 25% with immediate effect.
What this means for you is that if you are a higher rate taxpayer, bringing forward next year’s contribution of, for example, £750 per month could save you as much as £1,350. At today’s low interest rates you would need to have more than £60,000 invested for a whole year to receive that amount of interest.
It shouldn’t be difficult. The easiest way is to make a one off payment to your existing plan and suspend the direct debit for 12 months. Just watch out for fees. It is not a big job for your adviser. If you have a long term relationship it should be part of the service without you having to pay more fees.
The alternative is to use one of the online services such as Hargreaves Lansdown. If you are not confident to do this on your own just give me a ring on 07770 575122 and I can guide you through the process for a nominal fee of one month’s tax saving.
If you are over age 55 there are even bigger savings to be made but you may have already left it too late. Using one of the online services is probably now the only practical way ahead. Just click the image below to take a look at one of my previous blogs on this subject and then give me a ring.
There really is no time to waste. Post budget this opportunity will probably be gone forever.
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