Pensions can seem very complicated because of its tax rules and investment strategies
But that aside, in reality you are simply saving money towards your retirement, so that when you do retire, you have enough funds to provide a sustainable income and provide you with the financial security and stability you want for retirement. So ‘how’ you invest the money is very important to get the best growth possible.
With State Pension age getting older and older, it is a risky strategy to rely on the government to provide for you. So taking matters in your own hands now will help you be more comfortable in retirement.
Our pension specialists will help you make the key decisions when paying into pensions to help your money growth in the best way possible and provide you with a better retirement. They will also provide ongoing support and advice with your pensions to help keep them on track and help you meet your objectives.
How much Do I Need To Pay Into A Pension?
There is no set answer to this (like 10% of your earnings). The truth is it depends on how much income you want in retirement and also what other assets you are building towards retirement (such as a business, rental properties or investments). An adviser will help you to understand how much you would need in retirement, based on your life and objectives.
Then from that they will be able to calculate how much you need to contribute to reach your objectives.
Is it Worth Doing a Pension?
The main advantage of pensions is that you get ‘tax relief’ on the contributions. This means that for every £100 you put into a pension, the government top this up by a further £25, so £125 goes into the pension (25% growth on day one). If you are a higher rate tax payer then you also get a further 20% tax relief.
This is tax off of your income tax bill, so has the effect of increasing your net income (by decreasing the tax you pay each month). This is a significant advantage when building savings towards retirement to boost your pensions.
Contact your local pensions adviser
We have offices across the South of England ready to help and advise on pensions and your retirement needs. Contact our pension advisers today to find out more and discuss your needs.
What our client sayView all Quotes
I have been delighted with the recommendations given to make my pension arrangements more fit for purpose, flexible, and increasing my returns. James explanations of his advice and recommendations were clear and understandable.
Mr James, exeter
Despite a highly complex and involved situation, the clarity of friendly advice, thorough research and final recommendation achieved the most succesful outcome possible. Totally recommended to all, experienced investors and those simply wondering if financial advice from Premier is worth it… It certainly is!.
Mr Walker, exeter
The pension plan has exceeded my expectations. My savings and investments are now much easier to understand and are performing well. In the past I was always nervous about “financial” matters but now feel totally confident in Paul’s ability to advise me.