Make sure you’re tax efficient!
Research carried out by Unbiased has found that many people are not making the most of tax savings when it comes to financial planning. It discovered that a staggering £2.9 billion in pensions tax relief is being wasted as people are not using it.
Each year, UK employees on average put £3,260 a year into their pensions. This includes tax relief from the government of around £652 each.
However, there are 4.4 million workers who are not making any pension savings at all. This means that they are not getting any tax relief from the government, so £2.9 billion in tax relief will be unclaimed.
Anyone paying towards a pension receives tax relief on their pension savings at 20%, and up to 45% according to the rate at which they pay tax. If you are a higher rate taxpayer, the onus is on you to claim back the additional tax relief owed to you.
Read more about tax relief on our website.
Our mission is to make pensions accessible to everyone, so if there is anything you want to know about pension saving, please contact us and we will be happy to help. To discuss any pension-related issue: