Since the introduction of the Annual Allowance cap for pension contributions making additional pension contributions has been more restricted - but not impossible to maximise the tax relief on offer. The Annual Allowance for pension contributions has now dropped to £40,000 per year.
Remember a higher rate tax-payer contributing to a pension receives an immediate return of 66% because of the tax relief - good luck getting that kind of immediate return elsewhere! So it is imperative that we explore whether this is room to make further pension contributions.
- Are you aware of the 3 year carry back rule for pension contributions?
- Do you know how much of your Annual Allowance you have used this year and the previous 3 years?
- Are you aware of the additional contributions you can make to the NHS Pension Scheme like Additional Pension and Early Retirement Reduction Buy-Out?
- Are you aware of the new pension freedom rules which will mean complete access to personal pensions from age 55?
- Do you know what your personal pension is invested in? Modern pension wrappers have access to some of the best funds in the world, with complete freedom of choice of investment - you no longer compelled to invest in the perhaps expensive and poor-performing 'Life Managed Fund' or Life With-Profits Fund' that was sold to you 20 years ago.
For an appraisal of your Annual Allowance situation for pension purposes and recommendations on how to optimise your current and future pension plans then get in touch on firstname.lastname@example.org or telephone 0117 966 5699.
Alternatively, reserve your place on the Annual Tax Efficient Investing For Doctors Event on Monday 13th April at 6.30pm at Engineers House in Clifton by clicking here.