A J Smith & Company Ltd.
Pensions

For many years the widely-held view was that men worked until age 65 and then, on average, died within five years of retirement. But this is simply no longer the case. Many people today can look forward to 20 or more years in retirement. It is essential therefore to plan ahead for what is effectively the longest holiday of your life!

Surveys show that people have very rosy expectations of what the State, or their pension schemewill actually pay on retirement. Unfortunately, without regular review and realistic contribution levels, many face disappointment.

The really good news is that the Government is keen to encourage greater individual responsibility and self-provision in this area, and as such pensions are likely to remain one of the most tax-favoured investments available. Contributions to approved pension plans are eligible for income tax relief at the highest rate paid.

For basic rate taxpayers, every £100 contributed currently costs only £78,. Higher rate taxpayers are entitled to a further 18% income tax relief.

The funds you can invest in are largely free of UK taxes, and at retirement part of the accumulated fund can be taken as a tax-free cash lump sum.

Careful pension planning is obviously vitally important. Please contact us to discuss your requirements.

89 Buxton Road, Heaviley, Stockport, SK2 6LR. Telephone 0161 477 8181.

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