900 million wasted by poor pension planning
Maximise your pension contributions and save tax, says IFA Promotion
UK taxpayers will squander at least 900 million this year by not using up their pension contribution allowances, according to research* from IFA Promotion, the organisation promoting the benefits of independent financial advice. Consumers are urged to consult their IFA to ensure they are maximising the tax relief available to them, as well as providing adequate funds for a comfortable retirement.
And this 900 million figure - based on a conservative estimate of how much could be put into AVCs or FSAVCs by existing company pension scheme members not presently contributing to a top-up scheme - is merely the tip of the iceberg, according to independent research agency, RAKM, which conducted the research for IFA Promotion. The tax wastage from under-contribution across all tax brackets and pension scheme types would be far higher.
The tax reliefs on pensions should make them invaluable vehicles for all taxpayers - particularly higher rate taxpayers - looking for what is essentially free money from the Government to encourage retirement saving.
David Elms, Marketing Director of IFA Promotion, commented: "It's all too easy to put off until tomorrow what could be done today, especially in the case of pension planning for workers in their twenties, thirties and even forties, whose twilight years can still seem a long way off. The reality is that people need to start funding their retirement as early as possible, to avoid an expensive last-gasp pension panic - an IFA can advise you how best to invest your money, tax-efficiently, for a brighter retirement."
For details of three local IFAs who can advise you on your pension options, call the IFA Promotion hotline number on 0117 971 1177 or visit IFA Promotion's website at www.unbiased.co.uk. Consumers can also request a copy of IFA Promotion's guide, Thinking about your pension options?, through the same channels.
For further information, please contact:
| David Elms | or | Shirley Hatherton / |
| Marketing Director | Laura Cronin | |
| Independent Financial Adviser | Lansons Communications | |
| Promotion | Tel: 020 7490 8828 | |
| Tel: 020 7833 3131 |
* For detailed enquiries on the Wasted Tax investigation content, please contact:
Paul Hersey
Research Analysis and Knowledge Management (RAKM)
01737 773 497
For details of IFAs who can comment on pensions issues or for case studies, call the IFA Promotion Press Services hotline on 020 7294 3682.
Notes to editors:
1. Independent Financial Adviser Promotion
Independent Financial Adviser Promotion Ltd. was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents over 9,000 registered individual independent financial advisers across the UK and is sponsored by 34 leading financial institutions.
2. Independent Financial Adviser Promotion. s sponsorsAberdeen Asset Unit Trust Managers | PPP Lifetime Care Plc |
Barclays Global Investors Funds | Prudential Intermediary Division |
BUPA | Scottish Amicable Life Plc |
CGU Life | Scottish Equitable Plc |
Clerical Medical Investment Group | Scottish Life Assurance Company |
Dresdner RCM Funds (UK) Ltd. | Scottish Mutual Assurance Plc |
Eagle Star | Scottish Provident Institution |
Family Assurance Society | Scottish Widows' Fund & Life Assurance Society |
Friends Provident | Standard Life Assurance Company |
Hill Samuel Asset Management Group | Sun Life |
INVESCO Fund Managers Ltd | Swiss Life (UK) plc |
Investec Guinness Flight | The Canada Life Assurance Company |
Legal & General | The Skandia Group of Companies |
Mercury Asset Management | Tunbridge Wells Equitable Friendly Society |
National Mutual | UNUM Ltd |
National Savings | Winterthur Life UK Ltd |
Norwich Union Life Insurance Company Ltd | Zurich Life Assurance Company |
NPI |