A pension is a financial scheme contributed to in the form of a regular monthly income which will offer safety and peace of mind in your years of retirement. Despite the fact that the UK government has compulsory state pensions for everyone, it only provides limited benefits which might not be adequate to support you when you retire. It is unwise to be dependent only on a single UK pension for your retirement years.
UK Pension – Retirement Plan Benefits
There are a few fortunate people who have contributed to a pension fund that is based on the years of service in a job and the amount of salary upon retiring. Nevertheless, any type of UK pension you plan on getting, the advantages are the following:
• A tax efficient way to save money to ensure a reliable and continuous income once you retire or stop working
• Tax relief on payments made into your pension funds; your tax relief increases as your contributions increase
• Depending on your pension regulations, you can take as much as a 25% payment, tax-free on on reaching pensionable age
• Compound interest for your pension fund value
Making a Decision on Your UK Pension
If you are a UK expatriate or have worked in the UK and have a current UK pension you might be able to benefit from the generous tax breaks of a UK pension transfer when planning for retirement.
What is a UK Pension is a post by David on UK Pensions Advisor. Check out UK Pensions Advisor - UK pension information including QROPS, QNUPS & SIPPS..