Retirement and Pension Fund Investments Package

How a Pension works

• You pay money regularly
• You get a top up from the government
• You have a pot of cash to live on when you work less or retire completely

A pension is simply a pot of money which grows free of UK tax.

You, your employer, and the government can all pay into it. You can also pay into someone else's for example for your spouse or children.

Choosing how to take your pensions

You can usually take your pension from 55 and have range of options to choosde from for income. You'll also be able to recieve up to 25% as tax-free cash.

How much can you add to your pension?

How much you should put in your pension depends on your personal circumstances.

Pension and tax rules can change, but as a rule of thumb, if you want to retire at 65, you should consider saving an annual percentage of your salary that's equal to at least half your age when you start saving. So if you start saving when you're 24, you should consider putting at least 12% of your salary in your pension each year until you retire. If you start at 40, you should consider at least 20%. Try and maintain this percentage as your earnings increase. Note: You can usually pay in as much as you earn up to £40,000 a year, and get tax relief. If you don't have any earnings, you can still pay in up to £3,600 a year and recieve tax relief. You may be able to pay in more than £40,000 if you have unused allowance from previous years.