-- Pension Tax Tip 4 - maximise pension contributions while you can --


Protect your money from the recent Budget tax cuts
Protect your money from the recent Budget tax cuts

DWP tackles state pensions for civil partners
DWP tackles state pensions for civil partners

Maximising Pension Contributions with PIPs
Maximising Pension Contributions with PIPs

One year annuity deferral could take 24 years to recover
One year annuity deferral could take 24 years to recover

 

Maximise pension contributions while you can

The maximum tax relievable personal contribution to a pension plan is100% of relevant UK earnings or £3,600, whichever is the higher.   If you have had the misfortune of having your job made redundant recently, it makes sense to contribute to a pension plan before the end of the tax year.

Many individuals consider investing some of their redundancy payment, especially any amount over the first (tax free) £30,000. If a redundancy payment greater than £30,000 is received and added to 2010/11 income earned before redundancy, higher rate tax may be due on a considerable amount of money.

However, earnings for 2011/12 could be far lower or even nil, in which case the contribution would be limited to £3,600. Those wanting to obtain higher rate tax relief may need to contribute before the end of the tax year.

Source: Citywire

For bespoke pension advice contact Credencis.

We are situated near to Derby, Leicester, and Nottingham.

Credencis

"Live for today, Invest for tomorrow"

Views expressed by our author, are the personal views of the author alone, and are not intended in anyway to be construed as advice.They should only be used as guidance and are not necessarily suited to the personal circumstances of every individual in the UK.If you are interested in seeking advice further then please contact Credencis direct.