Pension Tax Relief
Pension Tax Relief
Below is a example illustrating the effective use of pensions to achieve monetary growth for retirement planning.
For example,
You want to contribute £8,000 into your pension.
The Government adds £2,000 (20% Tax Relief) to make a total investment of £10,000.
If your a higher or additional rate tax payer, you can claim back even more tax relief via self assessment.
Therefore, a £10,000 pension contribution costs higher rate taxpayers (40% Tax Relief) as little as £6,000 & additional rate taxpayers (45% Tax Relief) as little as £5,500.
For high earners, the effective tax relief in some instances can be 60% and when contributions are paid via salary sacrifice the effective rate can be increased to nearly 67%!
Click on the different retirement categories to learn more about these:
Personal Pensions – Occupational Schemes – Annual Allowance
Lifetime Allowance – Money Purchase Annual Allowance (MPPA)
State Pension – Small Self Administered Schemes (SSAS)
Personal Pensions – Occupational Schemes – Annual Allowance
Lifetime Allowance – Money Purchase Annual Allowance (MPPA)
State Pension – Small Self Administered Schemes (SSAS)
Want to talk about pensions?
Call us for a friendly chat on 01253 881 910 or email: info@beckettsfs.co.uk