Pensions

Personal Pensions and Tax Relief

Personal pensions are created to help you save for your retirement by giving you significant tax advantages. Contributing to your personal pension gives you tax relief, making your retirement savings grow faster. For example, a basic-rate taxpayer is granted 20% tax relief without having to do anything, while higher-rate taxpayers will need to fill out their tax return to see additional tax relief. Because of these incentives through tax relief, building a retirement fund through a personal pension is one of the most tax efficient ways of doing so.

SIPPs: Greater Control and Broader Investment Choices

A Self-Invested Personal Pension (SIPP) offers far more flexibility than traditional pension schemes. SIPPs allow you to choose from a wide range of investments, including:

• Shares and bonds
• Investment trusts and mutual funds
• Commercial property
• Cash and deposits

This flexibility empowers you to tailor your pension investments to your risk appetite and financial goals. Many individuals choose to work with a Chartered Financial Planner such as ourselves at Howard Wright, to help manage their SIPP and ensure their portfolio remains aligned with their long-term objectives.

SSASs: Ideal for Business Owners

A Small Self-Administered Scheme (SSAS) is a type of occupational pension scheme typically set up by company directors or business owners. Like SIPPs, SSASs offer broad investment options, but they also provide unique advantages for businesses:

• Ability to purchase commercial property, including your own business premises
• Option to lend money back to the sponsoring employer (within strict regulatory limits)
• Greater flexibility in managing pension assets among a small group of members

Buying business premises through a SIPP or SSAS can be a tax efficient option, allowing your pension fund to own the property and lease it back to your business. This can provide rental income to the pension and potential long-term capital growth, all within a tax efficient environment.

Consolidating and Managing Your Pensions

If you have several pensions from past employers, merging them into one organised scheme can help you keep track of your retirement investments and save on charges. Our team of Chartered Financial Planners can help you review your existing pensions, assess the benefits and drawbacks of pension consolidation, and ensure your retirement savings are structured for maximum efficiency.

Expert Guidance from Howard Wright

As a fully independent, family-owned firm, Howard Wright has been recognised as one of the UK’s top 100 financial advisers. Our Chartered Financial Planners offer:

• Personalised advice tailored to your circumstances and goals
• Expertise in pension tax relief and investment strategies
• Support with setting up and managing SIPPs and SSASs
• Ongoing reviews to keep your retirement plan on track

Whether you’re just starting your pension journey or looking to optimise your existing arrangements, we’re here to help you plan for and achieve a rewarding stress free retirement.

Call Us Today

Contact our team at Howard Wright today by calling 0345 688 4939to speak with one of our Chartered Financial Planners and discover how we can make your pension work harder for you and your business. We look forward to hearing from you and seeing how we can help take the stress out of your pension planning.

Disclaimer: This article contains information from sources believed to be reliable but no guarantee, warranty, or representation, express or implied, is given as to its accuracy or completeness. Howard Wright Ltd does not undertake any obligation to update or revise any future statements. Past performance is not a reliable indicator of future results. Investments can go down as well as up and actual results could differ materially from those anticipated. This article is for information purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any person as such, the information contained in this article is not intended to constitute, and should not be construed as, investment or financial advice. Appropriate personalised advice should be taken before entering into any transactions. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. Howard Wright Ltd is Authorised and regulated by the Financial Conduct Authority.