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Wherever you are with your retirement savings, do not be put off from considering action, it s not too late. There are still steps you can put into place to boost the pension you ll get when you retire.
Pensions are a very tax-efficient way to save. If you already have a pension, now would be a very good time to contact us about making a single premium investment to boost it, especially as the final stage of tax year is speedily emerging, or starting a SIPP to widen your choices. You will not have to take all your pensions at the same time.
If you are self employed, you can contribute up to 100 % of the value of your applicable UK earnings (salary and other earnings), up to a maximum of 245,000 for the 2009/10 tax year rising to 255,000 for the tax yr 2010/11. Contributions above this yearly amount are granted but will be taxed. You can invest into any no. of pension schemes (personal and/or company) each year.
You ll obtain tax relief on your Investments, so if you are a 40% tax payer a 20,000 contribution would cost just 12,000. Basic rate tax relief is added by the government to all contributions at a rate of twenty%.
High rate tax payers can claim up to a further 20 percent tax relief via self assessment. If you earn more than 150,000 you will see the tax relief on your pensions cut from April 2011, tapering from 40 to 20 percent for those making more than 180,000. Wage Earners beneath 130,000 will not be impacted.

There s a lifetime limit on the size of your pension savings, which is presently £1.75m in the tax year 2009/10 but rises to £1.8m for the 2010/11 tax year. If your investment fund exceeds this, you ll incur tax charges of 55 % if the surplus gains are taken as a lump sum and 25 percent if taken as regular income. The income will then be subject to income tax at your highest rate.
From 6th April 2010, the age at which you can start taking your pension rises to fifty five. If you need to, pension benefits can be deferred until you are up to 75 years old. You may still be able to take your pension before age fifty five in certain circumstances, e.g. if you retire through ill-health.

Consilium Asset Management Limited provide pension advice and retirement planning advice.

The value of investments and the income from them can go down as well as up and you may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent finance acts.