About Pensions
There is a pension plan to suit the way you want to save for your retirement. Whether you are looking for a low cost option or more flexibility and control over how your money is invested we have a solution for you. All pensions offer the same tax benefits that enhance every contribution, making them a great way to save for your future.
Pensions are very tax efficient
No other type of saving or investment can match pensions for tax efficiency.
- Tax relief on contributions - You automatically receive 20% tax relief on your pension contributions. High rate tax payers can claim back additional tax relief through self assessment.
- Tax efficient growth - Your contributions are invested in a fund that doesn't pay any UK Income and capital gains taxes.
- Tax free cash - You can usually take up to 25% of your pension fund tax free when you retire.
The state pension is not enough
The basic state pension in 2011/12 is £102.15 a week, for a married couple who have both worked, this amounts to £204.30 a week.
If only one partner has worked, the total for a married couple could be as low as £163.35 a week. You have to question whether you could live the kind of lifestyle you would want in retirement on these amounts. Most would say no and that's where personal pensions fit in.
The benefits of investing in a pension with TQ Invest are the savings you make on initial and ongoing charges, making it cheaper than going direct to the provider or through your bank. We also offer a range of pensions to suit your requirements.
The money you contribute into your pension is invested into a portfolio of funds. The aim is that this will grow to provide you with sufficient sized pension fund at retirement to give you a comfortable income.
Your payment
You can pay as much as you like into your personal pension,
and contributions up to £2,880 annually will receive tax relief at 20%, so your
£2,880 will be turned into £3,600.
Your employer's payment
This can be a contribution from your employer
or from your pay before tax and national insurance are deducted.
A pension is a popular way to save for retirement because it is tax efficient.
This is because HM Revenue & Customs (HMRC) adds tax relief to the payments you make into your plan. For example, because basic rate tax is 20% and you make a payment of £80, the government will add £20, so the total invested into your plan is £100. This is known as basic rate tax relief.
If you pay tax at more than the basic rate, at 40% or 50%, basic rate tax relief at 20% will automatically be added to the payments you make into your plan. You may then be able to claim back the additional proportion of tax relief on your annual self-assessment tax return, subject to annual limits.
It can be difficult to decide how much income you will need in retirement, as your lifestyle may be different when you reach that milestone.
In the future you might:
The universal truth is that the sooner you start saving into a pension, the wealthier you will be in retirement.
Inflation always hurts your standard of living. Rising prices mean you have to pay more for the same goods and services year on year. So when you come to retire your pension savings may not purchase as much as they did when you began saving.
Investing in stock market–linked investments should help your money to grow and keep pace with inflation, although there are no guarantees. As your pension is a long- term investment, it should have time to smooth out any impact from highs and lows in the stock market along the way.
Protecting your pension against inflation is important as your savings may have to stretch further when you reach retirement age. We are all living longer healthier lives, if you retire at 60 you could easily live for another 20 years or more.
The earlier you start to save the wealthier you will be in retirement.
The forecasts above do not take charges into account and are not a reliable indicator of future performance. You should obtain a personalised illustration.
We offer a number of pensions options
Personal Pensions
Offer an easy way to build up your retirement savings.
Stakeholder Pensions
Ideal if you want to keep your pension arrangements simple.
Your options at retirement - Annuities
Choosing the right annuity can mean a higher income in retirement.
Read more about annuities.
Our trusted providers
We choose providers we believe provide the best value. Here are some of our trusted providers:
