When it comes to retirement planning, time is one of the most important assets you have to save for retirement.
It takes a long time to build up the investments needed to provide a comfortable retirement income and the sooner you start retirement planning and saving, the better. Even putting a small amount away on a regular basis, if done long term, can make a difference. Both occupational or company pension schemes and personal pensions are tax-efficient.
Your contributions to company pension schemes are deducted from pay before tax is calculated and for contributions to personal schemes, tax you have paid before you make your contribution is reclaimed for you by your provider. In to each type of plan you can contribute up to £3,600, 100% of your net relevant earnings or £50,000 (for tax year 2011/12), whichever is the greater and you can then use your personal income tax allowances before calculating the tax you pay when that pension finally pays out.
If you work for more than one employer, a financial adviser can help you check your previous company schemes and work out what you are entitled to. Your retirement planning might also include individual savings accounts (ISAs) which are tax-efficient ‘wrappers’ all profits earned on investments held inside them are paid out to you free of further tax. The amount of money you can invest in an ISA is also subject to limits (£10,680, tax year 2011/12), but it is worth getting into the habit early.
If you think you could benefit from retirement planning we’d be happy to offer our services. But don’t delay because the longer you put off planning for your retirement the less retirement income you’ll have. Call us now on 0141 764 0040 and let’s see if you can help. Contact Us.