02/09/2013
Pension Plan
So why do I need to save for a pension?
There is no getting away from the fact that we are all living longer and the days are gone whereby the state can enable us to live to the same standard that we have been used to.
It may sound hard to believe but the UK faces a short fall of over £9 trillion to support only the next generation in their retirement.
At the moment the state pension is only £102.15 per week but that is scheduled to rise to a flat rate of £140 per week for the people who haven't retired yet.
Everyone will need a personal pension to increase their income in retirement and one of the great things about saving for a personal pension is that the money that you save is tax free.
As an example, if you save £800 into a pension fund the government will add £200 to make it a £1000. That is if you are a basic rate tax payer, if you are a higher rate tax payer of 40% you can claim another £200 on your annual tax return whilst if you are a 50% tax payer you can claim another £300.
