Article Abstract:
Selecting a United Kingdom personal pension may appear difficult for a number of reasons. Government regulations may be confusing, and companies do not always present information in the clearest way possible, especially about charges. Flexibility over charges and a strong investment performance are the main factors that investors should look for. Some companies sell pensions directly and may offer low costs and clear charging structures, but they may be limited to tracker funds which may not be the best form of investment.
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Article Abstract:
United Kingdom investors can obtain tax advantages if they use personal pension schemes. There is tax relief on contributions which is worth more to higher-rate tax payers, and the investment fund in a personal pension plan does not give rise to capital gains tax liabilities or liabilities for tax on dividend income. Personal pensions are portable and flexible, since savers can draw on funds without retiring, and can take 25% as a lump sum. Investors should ensure that they can take contribution holidays.
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Article Abstract:
UK investors should reassess their financial affairs when they reach the age of 50-years-old and ensure they will have enough retirement income. There is still time enough for investing in a pension at this age. Non-pension investments can be used since they may provide tax-free benefits, and part of pension income is taxed. Life assurance cover is less of a problem since mortgages have usually been paid. Inheritance tax issues should be considered and each partner should use their allowance to the full.
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