UK pension savers miss out on £683 million tax relief

For immediate release                                                         4^th October 2004

·                 69% of company scheme members have not made any Additional Voluntary Contributions (AVCs)

·                 Call 0800 085 3250 or visit www.unbiased.co.uk for details of local IFAs who can help you plan your pension

Pension provision is a growing concern for many, but even those who have been astute enough to plan for retirement could be making their money go further, as research from IFA Promotion reveals that higher rate taxpayers in company pension schemes are throwing away £683* million by not boosting their contributions.

This hefty amount is wasted because 69% of the 1.5 million higher rate taxpayers in company pension schemes have not made any additional voluntary contributions (AVC).  If all these people made even a moderate AVC of £1650 then £683 million of avoidable waste could be reclaimed from the taxman.  

David Elms, Chief Executive of IFA Promotion, said, “The amount wasted in terms of under-contribution to pensions is colossal; two thirds of those on high incomes fail to maximise their retirement contributions.  It seems that too many people open a pension scheme and then either ignore it or fail to make the most of the valuable tax relief on offer.”

“An IFA can help you take control of your financial future by regularly reviewing your plans to make the most of the pensions and savings vehicles available and ensure you are heading towards a richer retirement.”  

To help people take control of their financial future IFA Promotion is offering a free guide to pensions.  For a copy plus details of local pensions specialist IFAs, call 0800 085 3250 or visit www.unbiased.co.uk

-ends-

* TaxAction 2004 was produced for IFA Promotion by RAKM, and is partly based on a specially commissioned analysis of Inland Revenue data combined with other sources such as the Family Resource Survey.

For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 27 leading financial institutions. In 2003, over 330,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

·        Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

·        Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

·        Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.   Independent Financial Adviser Promotion’s sponsors