Pensions are one of the few annual tax shelters that were not reduced or eliminated entirely during the recession.
During the accumulation phase individuals still benefit from income tax relief at the higher rate on personal contributions within certain thresholds. In addition to this, employers can also contribute to an employee’s pension without creating any charge to tax for the employee.
Once the contributions have been made to the pension they can accumulate tax free within the pension fund up to the point of retirement of the individual. At retirement an individual can take a tax free lump sum and they have a range of options to consider with the balance of their fund.
Depending on an individual’s circumstances, there are a wide range of different pension vehicles to choose from and a wide range of different pension providers. Identifying the correct pension and a world class pension provider is where Distinct Wealth Management can add significant value for both individuals and companies looking to set up a pension. Click the relevant client type below to find out more.