Research from Unbiased.co.uk, the
professional advice website, has revealed that working people in company pension
schemes are missing out on huge sums by neglecting to save in tax-efficient
ways. High-rate taxpayers that are members of their employers’ occupational
pension scheme will miss out on an extra £720 million tax relief this
year by failing to make Additional Voluntary Contributions (AVCs).
AVCs run alongside employers’
pension schemes and allow employees to pay extra into their pension which should
result in a larger pension pot at retirement. AVCs benefit from the same tax
relief as contributions paid into the main pension scheme, so it makes sense
to benefit from this tax-efficient way of saving for retirement.
David Elms, Chief Executive of Unbiased.co.uk
comments: “Failing to save for retirement has become an increasing problem
for the UK population. The onset of the credit crunch has further compounded
this problem as the value of people’s pension funds is decreasing and
they are also finding their money doesn’t go as far as it used to. A discussion
with an IFA is a good way to ensure you are planning effectively for your retirement
and get your financial planning in order.
http://www.unbiased.co.uk/
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