Personal Pensions are individual retirement savings plans with valuable tax breaks to help you save a sufficient amount of money to live on through your retirement. The plans can offer up to 40% tax relief for higher rate income tax payers. From the 6^th April 2008 basic rate tax payers will enjoy a 20% tax break.

 

Effectively, your savings will immediately grow by at least 20% in a pension plan. For every £80.00 you save the Government will add £20.00.

 

Strangely, many younger people are put off by the word pension. So we like to call it retirement planning. Everyone dreams of retiring with plenty of money and enjoying themselves. There are many ways you could plan to have money in retirement.

 

We specialise in Pension Plans, Financial Investments and Investment in Property. You may have other ideas such as buying works of art throughout your life and selling them in retirement. Our key message is the younger you start, the better the retirement you will have.

 

Let’s assume you earn £20,000.00 per annum. Do you know how much money you would need saved to pay you this sum in interest? Well it’s easy to estimate. Generally in today’s market you could expect around 5% interest from a bank. It’s about the same return from a Buy to Let property. £100,000.00 would create £5,000.00 per annum. You would need £400,000.00 to invest to achieve £20,000.00.

 

When you reach retirement age your salary will be many times higher and with inflation, you will need a much larger fund to generate sufficient income to match it. It’s a tall order and an impossible one if you only start to think about your pension after you are 40 years of age.

 

To save £400,000.00 in a jam jar would take you 35 years and £953 per calendar month! So the Government tax break and choosing a good investment is vital to maximise investment growth. We can discuss your hopes and needs and provide you with the most suitable savings plan and investment ideas. This will enable you to look forward to your retirement. Please contact us for a free consultation.