Pensions: A valuable way to build up your savings for retirement
It is important to build up wealth in your working career to secure your post-retirement standard of living. And most individuals do so by paying into a tax favoured pension scheme.
The concept is a sound one. You get tax privileges as you put money in and whilst you invest. In addition, you only pay tax when you take money out and even then there is the tax free lump sum to be taken. The main drawback is that the funds are only accessible from age 55 and then in a restricted way and the tax free lump sum is usually only 25% of the fund value.
Pension schemes being tax favoured inevitably brings complications including limitations on the amounts you can pay into your pensions each year and the amount you can accumulate in your pension scheme in your lifetime. Notwithstanding these, our experience shows pensions are a valuable way to build up your savings for retirement and our experience will assist you in this objective.