A pension remains one of the most tax-efficient ways of saving for your retirement. The government views retirement savings as being so important that it offers generous tax benefits to encourage us to make our own pension provision. However, the tax benefits will depend on your personal circumstances and the tax benefits will depend on your own personal circumstances and the tax rules are subject to change by the government.
One solution you may wish to consider if appropriate to your particular situation is a Self-Invested Personal Pension (SIPP). Like all pensions, a SIPP offers up to 50 per cent tax relief on contributions and there is no capital gains tax or further income tax to pay. However, unlike dividend payments received outside a SIP.
A SIPP is essentially a pension wrapper, capable of holding investments and providing the same tax advantages as other personal pension plans, that allows you to take a more active involvement in your retirement planning. SIPPs are not appropriate for small investment sums.
You can generally choose from a number of different investments, unlike some other traditional pension schemes that can be more restrictive, and this can give you greater choice over where your money is invested. Whereas traditional pensions typically limit investment choice to a shorter list of funds, normally run by the pension company's own fund manager's a SIPP lets you invest almost anywhere you like...Click Here to read further and to download 'A Guide to Self-Invested Personal Pensions'.
CFS Independent Financial Advisers
Lower Blyth Suite, Kirkley Hall,
Ponteland, Newcastle upon Tyne NE20 0AQ
Telephone: 01661 821110
Fax: 01661 824296
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