R.J.
Nash
Consultancy Ltd
Independent Financial Solutions
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Everybody who is eligible for a Personal or Stakeholder pension can pay £3,600 gross per tax year. It does not matter whether they are a child, employed, self employed, retired, etc. this amount applies whatever their employment status. The £3,600 limit includes: • Your own contribution • The tax relief you receive from the Inland Revenue • Any contribution your employer makes • Any contributions you have already made to Personal or Stakeholder pensions in that tax year. For those with earned income, the following applies: Maximum annual tax efficient gross contributions to age 75: • Individuals £3,600 or 100% of earnings to £235,000 • Employers £235,000 less employee contributions Maximum tax efficient fund on taking benefits in 2008/09: £1.65m (rising to £1.8m in 2010/11). It is vital to review your pension planning to ensure that you will enjoy the level of income at your preferred retirement age which you expect. If you are unsure about any of these issues or would like any further information, please e-mail us at enquiries@rjnashconsultancy.co.uk Important Points : Pensions - if you have now or in the future, the option of joining an employer's occupational pension scheme, or a pension to which they will contribute, you should consider joining it or making additional contributions to it first. Annuity rates - may change from time to time and are only guaranteed for a limited time period. An annuity is a long term investment as it cannot be cancelled or transferred to another provider once set up. It does not have a cash-in value. Annuities may have cancellation rights but these are only available for a limited time period. Annuities are covered by the Financial Services Compensation Scheme. This acts as a safety net should an annuity company become unable to meet its annuity obligations. |
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