Blog Article

Power up your pension

Power up your pension

Date: 27 March 2024 | By: cosgrove

Did you know that you can make one-off pension payments aand power up your pension at any time? We can help you crunch the numbers.

In fact, people are encouraged to do so with tax incentives offered by the government. If you have
accumulated extra money from a windfall, bonus or through saving, why not power up your
pension with a single contribution?

Crunch the numbers
Tax relief is available on contributions up to a maximum of £3,600 a year or 100% of earnings, whichever is greater, with the level of relief dependent on a person’s marginal rate of Income Tax. For instance, a £1,000 lump sum contribution could effectively cost a higher rate taxpayer just £600, after receiving £200 basic rate tax relief from the government and claiming £200 in additional relief from HMRC.

During the 2023/24 tax year, the annual contribution limit for tax relief purposes is 100% of a person’s
salary or £60,000, whichever is lower, although unused allowance from the previous three tax years
can be carried forward.

Future focus
Paying a lump sum into a pension can be an effective way to save for your future. Making a single contribution basically enables people to go above and beyond their regular commitments and
move closer to achieving their pension saving goals.

We can give retirement income & pension planning advice on personal pensions, getting the most suitable annuity rates, stakeholder pensions, self invested personal pensions (SIPPs), small self-administered schemes and equity release. Key pension services:

  • pension review
  • pension consolidation
  • pension transfers
  • pension draw down and defined benefit pension transfer.

We can help you build up the funds you’ll need to enjoy your retirement years to the full. If you want to make the most of your available allowance(s), we can help you power up your pension - just give us a call!