Retirement seems a long way off, and pensions might not feel important.

Poor pensions. They aren’t the most exciting topic at a party. But if you put your preconceptions to one side, and take a moment to find out more, you’ll see they’re actually quite special. They can be a very powerful part of a financial plan and make a huge difference to your wealth, not just when you retire, but right now!

For example, did you know that if you pay money into your pension, you get a chunk of tax back? If you pay 40% tax, you get all of that back. 20% goes into your pension, and the rest you keep. Even if you pay no tax at all, any money you put into your pension is boosted by 20%. So it’s a brilliant way of saving money for the future and having more money now. Bonus.

If you’re employed, you should have been invited to join your employer’s workplace pension. They’re often better value than a pension you set up yourself because the employer will match your contributions every month.

If you’re self employed or own your own business, would you like a way to take profits out of the business, reduce your tax bill and save for the future all at the same time? Perhaps you want a way of using pension money to buy your own business premises? The answer to all of those is to use pensions. You see, we said they were powerful!

Money inside a pension grows tax free. Why is that important? Because most investments pay tax when they grow or make income. That means they have to work really hard to grow. But investments inside a pension don’t have that drain on them, so they have a much better chance of growing more, faster.

On top of that, the clever thing about any sort of investment you have for a long time, is that the money you pay in works harder and harder as time goes on. It’s called the compound interest effect.

You might need a new pension plan because you’ve never had one before, or because an existing plan isn’t suitable any more. We can recommend a pension plan to suit you and get it all set up for you, quickly and easily.

Once we’ve read through the background information you send through, we will invite you to book a short phone/online video session to talk through our advice and to check you feel comfortable with the risk level we suggest (you can learn more about this here). If you have any ethical or religious investment considerations we’ll talk those through too. When you’re ready to go ahead, we will explain what to do next. Often you can arrange it online. Sometimes we will send you a form to sign and return by email.

Cost of our advice

It costs £250 to set up a new pension plan.

Important note

This service provides you with a regulated personal recommendation. You can read about the difference between financial guidance and regulated personal recommendations in our Service Terms.

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