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pensions Newton Abbot
Due to the limitations of the state pension, it is advisable for most people to save for their retirement. This could be anything from cash on deposit, ISAs, Endowments, investments. However using one of these savings plans rather than a pension means you miss out on the enormous advantage of Tax-Relief.

You are eligible for tax-relief on any contributions made to a registered pension scheme. The maximum being the lesser of 100% of your relevant earnings or £50,000 per year (2011/12). You receive tax-relief at your marginal tax! rate, so for 20% tax-payers, every £100 pension contribution you receive £125 in your pension. For high rate tax! payers the benefits are even better, and a further 20% or 30% relief can be reclaimed.

In addition to tax-relief on contributions, pensions also benefit from tax-free returns on fixed interest and tax free gains. UK share dividends are taxed at 10% at source (non-reclaimable), but there is no further tax to pay.
 
If you do not pay any tax, you can still benefit from tax relief on contributions of up to £3,600 gross. This means you can contribute £2,880 net and receive £3,600 after tax relief in your pension. 
 
Pension planning can be broken down into two stages, pension saving and pension withdrawal.  

Pension saving encompasses all forms of retirement savings you make throughout your life time, which can include:

 
  • Occupational Pensions (Final Salary or Defined Contribution)
     
  • Personal Pensions
     
  • Self Invested Personal Pensions (SIPPs)
     
  • Other Investment Vehicles (such as ISAs/Collectives and Bonds)

    These investments can in turn include a variety of asset classes.

    Pension Withdrawal can include:

     
  • Annuities
     
  • Income Drawdown
     
  • Tax Free Cash
     
  • Phased Retirement

    The route you opt for will be dependent on your circumstances.

    The technical information within this site should help to answer your questions, but if you would like answers to specific questions, please contact us with your question or to arrange an appointment to discuss your personal circumstances.

    Levels and bases of, and reliefs from, taxation are subject to change and any tax reliefs referred to are the current ones and their value will depend on the circumstances of the individual investor.


    Hedgelands Financial Services, Hedgelands, Abbotskerswell, Newton Abbot, TQ12 5PW
    Registered in England No. 4694508.  Registered Office 32 Monk Street, Abergavenny, Monmouthshire, NP7 5NW
    Hedgelands Financial Services Ltd is authorised and regulated by the Financial Conduct Authority, FCA Registration Number 624282. Sitemap
    Hedgelands Financial Services
    Hedgelands
    Abbotskerswell
    Newton Abbot
    Devon   TQ12 5PW

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    Telephone:

    01626 360654

    General Insurance:

    01626 438184

    Independent Financial Adviser
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