Pensions are one of the most tax efficient forms of investment due to the generous tax reliefs that are available.  These tax reliefs make pensions particularly attractive for higher and additional rate tax payers who can claim additional reliefs which in some circumstances can amount to up to 60% of the amount invested (meaning that you can add £10,000 to your pension but the cost to you would only be £4,000).

Pension contributions can also be an extremely tax efficient way of releasing money from a company for business owners and they can also form an important part of an individual’s estate planning.

Despite the plans for “pension simplification” introduced in 2006, subsequent legislation has led to further complexity in this area and there are several restrictions and allowances that it can be easy to fall foul of.  This can put many people off pension investment, but we would be happy to offer our guidance on this as pensions often form an extremely important part of every individual’s long-term planning.  It can be difficult to commit to saving towards something that may be many years into the future but the earlier you have a plan in place, the lower the burden on your current lifestyle as the level of saving required is spread out over a longer period.