IFA Welshpool, Powys ~ Financial Adviser Welshpool, Powys ~ Financial Planning Welshpool, Powys ~ Financial Advice Welshpool, Powys Pensions Advice Welshpool, Powys
mortgage advisers Welshpool, Powys

left webpage shadowright webpage shadow
Company logo

Tel: 01938 556 000

comment on image 1 comment on image 2

Personal

Personal Pension Plans

A personal pension plan helps you save money for retirement and is available to any United Kingdom resident who is between the ages of 16 and 75 (Children under 16 cannot start a plan in their own right but a Legal Guardian can start one on their behalf). You, in conjunction with your adviser, choose the pension provider and make the arrangements for paying the contributions to the plan.

You can start a personal pension even if you have a workplace pension or if you’re self-employed and don’t have a workplace pension. You don’t have to be working to take out a Personal Pension Plan and you can also provide a Personal Pension Plan for your spouse/partner or your child/children.

When you contribute to a Personal Pension plan, your money is invested by the pension provider (usually an insurance company) to build up a fund/pension pot over a number of years.

Tax relief

If you’re a basic rate taxpayer, your pension provider will claim back Income Tax at the basic 20 per cent rate on your behalf on the contributions you make and add it to your pension pot. Higher rate taxpayers claim the additional rebate through their tax returns.

Contribution limits

The total amount (the ‘annual allowance’) you or your employer can contribute to a defined contribution personal pension scheme, or schemes, is limited to £40,000* per annum. If you contribute more than that you will pay a tax charge. The maximum you can contribute to your personal pension or pensions in your lifetime — the ‘lifetime allowance’ — is £1 million*.

Tax-free cash

Most schemes allow you to withdraw 25% of your fund tax-free from age 55 onwards. Subsequent withdrawals are subject to income tax.

The size of your pension pot will depend on:

  • the amount of money you paid into the plan
  • the performance of the plan’s investments
  • charges payable under the plan

Taking your pension

Although most personal pension schemes specify an age when you can start withdrawing benefits from your personal pension (usually between 60 and 65) you are allowed to do that from age 55 if you wish. You don’t have to stop work to draw benefits from your plan.

Death Benefits

If you die before the age of 75 and haven’t purchased an annuity, your beneficiaries can inherit the entire pension fund as a lump sum or draw an income from it completely free of tax. If you’re over 75 years of age when you die, there will be tax to pay on any withdrawals made by the recipient of your fund.

*Tax year 2017/2018

A PENSION IS A LONG TERM INVESTMENT, THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.


Pensions Enquiry
In the news

Company address: MARS Independent, 44 High St, Welshpool, Powys, SY21 7JQ
T: 01938 556 000
Email: info@marsindependent.co.uk

You voluntarily choose to provide your personal details via this website. Personal information will be treated as confidential by us and held in accordance with Data Protection Act 1998. You agree that such personal information may be used to provide you with details or services in writing or by telephone.

Email communications are not secure and for this reason MARS Independent cannot guarantee the security of the email, its contents or that it remains virus free once sent.

Partners : Martin Mitten, Richard Jones, Gareth Roberts

The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

MARS Independent is an appointed representative of TenetConnectServices Ltd which is authorised and regulated by the Financial Conduct Authority. TenetConnectServices Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference 150643.

Telephone: 01938 556 000 | info@marsindependent.co.uk

Designed & developed by Web Pro IT © 2009

Life insurance quotes Welshpool, Powys ~ best mortgage rates Welshpool, Powys ~ Financial Advice Welshpool, Powys pensions advice Welshpool, Powys
retirement planning Welshpool, Powys ~ tax saving advice Welshpool, Powys ~ investment advisers Welshpool, Powys