Pension savers miss out on 720 million
The UK’s retirement savers are missing out on an extra 720 million tax relief by not making additional pension contributions
Research from Unbiased.co.uk, the professional advice website, has revealed that working people in company pension schemes are missing out on huge sums by neglecting to save in tax-efficient ways. High-rate taxpayers that are members of their employers’ occupational pension scheme will miss out on an extra 720 million tax relief this year by failing to make Additional Voluntary Contributions (AVCs).
AVCs run alongside employers’ pension schemes and allow employees to pay extra into their pension which should result in a larger pension pot at retirement. AVCs benefit from the same tax relief as contributions paid into the main pension scheme, so it makes sense to benefit from this tax-efficient way of saving for retirement.
David Elms, Chief Executive of Unbiased.co.uk comments: “Failing to save for retirement has become an increasing problem for the UK population. The onset of the credit crunch has further compounded this problem as the value of people’s pension funds is decreasing and they are also finding their money doesn’t go as far as it used to. A discussion with an IFA is a good way to ensure you are planning effectively for your retirement and get your financial planning in order.
Check out how much you could be savings by being tax efficient with Unbiased.co.uk’s tax waste calculator.
-ends-
* TaxAction 2009 report produced for IFA Promotion by RAKM, based on a specially commissioned analysis of HMRC and a range of other official data sources.
For further information on Unbiased.co.uk, the professional advice website pleases contact
David Elms | Anna Schirmer/Jennifer Comerford/ Anna Moulds |
Unbiased.co.uk | Lansons Communications |
020 7833 3131 | 020 7294 3682 |
To stay connected to Unbiased.co.uk and for up to date news and views you can now follow us on Twitter http://twitter.com/Unbiased_co_uk
Notes to Editors
Unbiased.co.uk, the professional advice website
Unbiased.co.uk is the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs. In 2008, Unbiased.co.uk fulfilled over half a million searches for local, professional advice.
The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is inviting accountants to sign up for its ‘find an accountant’ service. These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options.
IFA Promotion, the organisation behind Unbiased.co.uk, is now in its 20th year, and was set up to promote the benefits of independent financial advice to the consumer.
Unbiased.co.uk’s product provider sponsors
AEGON Scottish Equitable Plc | Lincoln |
Alliance Trust | Lockton |
AXA Life | Lutine Assurance Services |
Bright Grey | MetLife |
BPP | National Savings & Investments |
Canada Life Ltd | Norwich Union Life |
Cardif Pinnacle | Opinium Research |
The Children’s Mutual | Prudential |
Clerical Medical Investment | Royal London 360 |
Friends Provident | Scottish Life |
The Hartford | Scottish Widows Plc |
Invesco Perpetual | Standard Life Assurance Company |
Legal & General | Zurich Intermediary Group |
Registered Office: Unbiased.co.uk is the consumer brand of IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606