Putting your pension first
By Kirsten Hastings, 15 Feb 16
Pensions are a tax efficient and flexible way to save towards retirement but time is running out in the UK to use this year’s allowance, says Sarah Lord, managing director of Killik Chartered Financial Planners.
Those earning more than £150,000 will have the amount they can pay into their pension limited in the new tax year.
For every £2 of income you earn over £150,000, your annual allowance will be reduced by £1.
The maximum reduction will be £30,000, so anyone with a net income of £210,000 or more will only be entitled to an annual allowance of £10,000.
As a result, high earners affected by this change may have to reduce their contributions or suffer an annual allowance charge.
It is also important to look at any bonuses or additional payments you might receive throughout the year, in order to correctly calculate your entitlement.
Tags: Killik & Co | Pension | Sarah Lord
