It's a new tax year and the 50% tax rate has just kicked in.
If you're earning over £130,000 your next pay packet will probably give you a shock.
One way to make use of tax efficient investment opportunities is to use pensions as a form of retirement planning. For example a self invested personal pension ( also known as a SIPP) will allow you to construct an investment portfolio that you can tailor to meet your investment objectives. Pensions contributions attract tax relief and the funds once invested grow in a tax efficient manner.
Any income that you take however is taxable as income , part from any tax free cash you might be entitled to.
A sipp can also be used to help plan post retirement as you can use it to take unsecured income rather than purchasing an annuity. Additionally if your religious belief prevent you from purchasing an annuity, at the age of 75 you can continue to take an income in the form of alternatively secured pension benefits.
If you would like to find out about our pension advice service please feel free to contact Consilium Asset Management , or alternatively visit our website at www.consilium-ifa.co.uk .
This article should not be construed as advice. For specific advice on your own personal circumstances please contact us.
