What are the advantages of a pension?

Advantages

  • 25% bonus from the Government, added automatically.
  • Grows tax-free (you might pay tax when you withdraw it).
  • Claim back some 40% (or 45%) tax, if you’ve paid it.
  • 25% can be withdrawn tax-free.
  • Self-employed? Pay in from a limited company and save Corporation Tax.
  • Passes to your family tax-free if you pass away under the age of 75.

To consider

  • Add up to £60,000, or your annual income (whichever is lower), per tax year (April 6th to April 5th the following year).
  • Can’t withdraw until you’re 55 (57 from 2028), or terminally ill.

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