5 common pension misconceptions that could be costing you money:
If you’ve been putting off saving for a pension and are worried about your lack of savings, it’s important to remember it’s never too late to start taking action.
“Pensions are designed to help people invest for their retirement and, better yet, it’s a tax-efficient way of doing so,” Francis explains. “The government offers tax relief at the basic rate of 20% on contributions made to personal and workplace pensions. So for every £80 you pay in, the government will top it up to £100. If you’re a higher or additional rate taxpayer, you can claim back up to an additional 20% or 25% through your self-assessment tax return.
“There is a catch though – the money in a LISA must be used for retirement or put towards your first home. If you’re going for the retirement option, you won’t be able to access the money until you’re 60. If you need it sooner, you’ll lose the government bonus and will have to pay a 5% charge.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Deported Canadian arrested for sending Trump ricin ‘tweeted threat’Social media accounts bearing same name share common themes and include recent post threatening president
Read more »
Mexico's drug war leaves 39,000 unidentified bodies in its morguesInvestigation by Quinto Elemento Labs finds alarming number of people buried in common graves
Read more »
Keir Starmer accuses Boris Johnson of losing control of Covid crisisLabour leader trades blows with prime minister in Commons over test and trace
Read more »
Up to 200 workers could face redundancy at Ocado call centreFirm looks to shift jobs to Sunderland in a cost-cutting measure despite record profits
Read more »
Public will have to pay for 'moonshot' Covid-19 tests, Dido Harding saysTest and Trace head says rapid tests ‘may be a normal cost of doing business’
Read more »