Despite the ever changing pensions landscape, pension planning and saving for your retirement are still as vital as ever. Pensions still remain highly efficient, offering tax relief at your highest rate of tax on your contributions, and therefore are an important part of your overall planning.
- Annual and Lifetime Allowance reducing. As of 6 April 2014, the Annual Allowance for retirement funding reduced to £40,000, while the Lifetime Allowance reduced to £1.25m. With the Annual Allowance now reduced, the ability to carry forward unused allowances from previous years represents a significant opportunity to fund higher levels of contributions than otherwise possible. The reduction in the Lifetime Allowance means that advice is more important than ever to ensure that you are optimising your retirement planning, and are fully up to speed with the latest Lifetime Allowance protection opportunities.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances. The value of a pension will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.