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Friday, November 17, 2017

Turbochange your Pension

Will you be able to afford the retirement lifestyle you want?

If you’re still working, what kind of life would you like to lead when you’ve said goodbye to the 9-to-5? Saving for your retirement is essential if you want the financial freedom to enjoy your later years. After all, you’ll still want to do all the things you love now – and probably a few others too.

With that in mind, it’s a good idea to consider how big an income you’ll actually need. But at the heart of today’s challenge is rising longevity. UK life expectancy continues to rise, and a longer retirement means your savings will have to stretch further. Pensions and Individual Savings Accounts are popular ways of saving tax-efficiently, but they are very different from each other – particularly in how they are taxed.

Pensions should play an important part in everyone’s long-term financial planning, so ensure that you make the most of any employer’s contributions. Your own contributions are typically
also tax-free on the way in, making them a very tax-efficient way to save. However, when planning long-term savings, savers with big aspirations for their retirement need to bear in mind the lifetime allowance and annual allowance.

Read the full article here