Our services

Pensions

A pension is the cornerstone of sensible financial planning. Providing a reliable source of income in retirement and helping individuals maintain their standard of living after they stop working.

Pensions are also tax-efficient for employers who can make contributions on employee’s or business owners behalf. Contributions to pensions are tax-deductible, and investment growth within a pension plan is tax free.

Pensions offer a structured way to save for the future. Ensuring that when you are no longer earning a salary, you have money to cover your day to day living expenses as well as giving you the opportunity to have a fulfilled and enjoyable retirement.

Frequently asked questions

How does tax-relief work?

Tax relief makes pension saving highly tax-efficient, as it boosts your contributions significantly, especially if you’re a higher or additional rate taxpayer.

1. Basic Rate Taxpayers (20%)

You pay £80 into your pension, and the government adds £20 in tax relief.
Total contribution = £100.

2. Higher Rate Taxpayers (40%)

You still get 20% relief at source, but you can claim an additional 20% through your self-assessment tax return.
Total tax relief = 40%.

3. Additional Rate Taxpayers (45%)

You can claim up to an extra 25% through self-assessment, depending on your total income.

4. Any contribution made by an employer for its employees would be deductible against Corporation Tax. The contributions are NOT treated as a benefit in kind for employees. Employees pay no income tax or National Insurance on pension contributions paid by their employer on their behalf

Why pensions are important alongside The State Pension?

From 2026, the State Pension age will rise to 67, which is later than the age at which many people hope to retire.

Additionally, the weekly State Pension payment may not be sufficient to meet most individuals’ financial needs in retirement.

You can access your own pension plan any time after you reach 55 giving you the opportunity to retire at the time of your own choosing

What is the maximum you can contribute to a pension each year?

The maximum amount you can contribute to a pension without incurring a tax charge is determined by the annual allowance. The standard annual allowance is currently £60,000.

If your income exceeds certain thresholds, your annual allowance may be reduced.

If you have unused annual allowance from the previous three tax years, you may be able to carry it forward and contribute more than the standard annual allowance.

Ready to take control of your financial future?

Get in touch to see how our expert wealth management services can help you grow and protect your assets, and start planning for your future.

Pensions

Frequently asked questions

Ready to take control of your financial future?

Personal Protection

Business Insurance

Mortgages & Equity Release

Investments

Pensions

Trusts, Inheritance & Estate Planning

HYFi

Services

Policy information