Pension tax breaks: this is why they’re about to be cut – George Osborne’s Wednesday Budget is expected to usher in the first of many cuts to pension savers’ generous tax breaks! http://www.telegraph.co.uk/finance/personalfinance/pensions/11716178/Pension-tax-breaks-this-is-why-theyre-about-to-be-cut.html
Taken from the above article
“What action can you take now?
Drastic and immediately effective reductions to pension tax relief are seen as improbable in Wednesday’s Budget. Previous reductions to both the annual pension contribution limit (currently £40,000) and the lifetime allowance (falling to £1m in April 2016) have been introduced with some warning.
Trying to invest within the next few days simply on the fear of radical action by the Chancellor is impractical and rash, warned Paul Evans of Suffolk Life, a specialist pension provider.
But for those with pension arrangements in place and who were planning to make contributions around now in any case, doing so before the Budget might be safer than waiting.
“But ideally there would be enough time to allow for structured planning,” Mr Evans said. Your earnings, your use of previous years’ allowances and your alternative potential uses of the money all need to be taken into account.
But maximising the very generous tax reliefs – while they last – should be on everyone’s agenda. “What we know for now is that pensions are up there among the most tax-effective investments going,” he said”
It is vital you take advantage of all the tax breaks available to you to ensure you the have retirement you desire!
Speaking to someone about your pension tax relief options is easy with Reeves Independent, just email firstname.lastname@example.org or call us on 0191 281 9862 for a FREE initial conversation!