ARTICLE · 10 APRIL 2007

A Big Relief On Pension Contributions

Smith & Williamson

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Regardless of earnings, it’s possible to make pension contributions of up to £3,600 gross in any fiscal year and benefit from tax relief. Many people are unaware that pension contributions can be paid for minors or non-working spouses up to £3,600 per annum and as they attract tax relief, the net cost is just £2,808.

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Regardless of earnings, it’s possible to make pension contributions of up to £3,600 gross in any fiscal year and benefit from tax relief.

Many people are unaware that pension contributions can be paid for minors or non-working spouses up to £3,600 per annum and as they attract tax relief, the net cost is just £2,808.

The competitively priced savings environment of a stakeholder pension can be used for such investments. Charges are restricted to a maximum of 1.5% per annum of the fund value for the first ten years and 1% thereafter, with no initial charges.

The benefits of this tax subsidy and the favourable treatment of the underlying pension fund makes this an attractive way of building up long-term pension funds for non-taxpayers.

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