Personal Pension

To secure your financial future, consider a personal pension or SIPP for retirement savings and enjoy income tax relief on your contributions. You can choose to invest in various assets like shares, bonds, property, or cash, and the total amount you receive at retirement will depend on your contributions and the performance of your investments.

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Find answers to your most pressing questions about our pension planning services and process. The information provided in these FAQs does not constitute professional financial advice. We strongly recommend that you consult a professional adviser before proceeding with a financial transaction.

What happens to my pension when I retire?

When you reach 55 or 57 from April 2028, you will have three options to consider for your pension: you can take your pension fund as a lump sum, use it to purchase an annuity that provides a guaranteed income, or take your pension commencement lump sum and transfer the remaining balance into a flexible access drawdown plan, allowing you to withdraw either regular or variable income as needed.

What tax relief will I get on what I pay in to my pension?

You receive Income Tax relief when contributing to your pension, with your pension provider automatically claiming Basic Rate Income Tax Relief and adding it to your pension, effectively increasing your contributions by 20%. For instance, if you invest £100 into your Personal Pension, the taxman adds £25, resulting in a gross contribution of £125 for every £100 you pay. Higher and additional rates allow taxpayers to claim an extra 20% or 25% through their Self-Assessment Tax Return annually.

Moreover, suppose your Adjusted Net Income exceeds £100,000. In that case, the maximum tax relief you can obtain may reach up to 60%, as your pension contributions lower your Adjusted Net Income and help recover your ‘lost’ Personal Allowance, which diminishes by £1 for every £2 earned over that threshold.

Additionally, as a Higher Rate taxpayer with young children, you might be liable for the High Income Child Benefit Tax Charge, which deducts 1% of your Child Benefit for every £100 earned above the £60,000 threshold; contributing to a Personal Pension can decrease your Threshold Income, potentially recovering some of your Child Benefit. Once your contributions are invested, they grow free from personal Income Tax and Capital Gains Tax.

The amount you can contribute is restricted to the lesser of your Relevant Earnings, with a minimum of £3,600 gross, or the Annual Allowance, which is set at £60,000 for the 2024/25 Tax Year. Be aware that if your Adjusted Income surpasses £260,000, your Annual Allowance decreases by £1 for every £2 over the threshold, with a maximum reduction of £50,000; however, this does not apply if your Threshold Income is below £200,000. Please note that tax treatment is subject to your circumstances and may change.

What's the difference between a personal pension and a SIPP?

Personal pensions offer a straightforward way to save for retirement, usually with a limited range of investment options. SIPPs grant you greater flexibility and autonomy, allowing you to curate your investment portfolio to align with your unique goals and risk appetite. As you navigate these options, having a trusted advisor by your side is essential to demystify these choices and tailor a strategy that suits your lifestyle, ensuring you are well-prepared for the next chapter of your life.

What's the minimum pension age?

In the UK, the minimum pension age is currently set at 55, but this is set to rise to 57 by 2028, meaning you’ll need to wait a bit longer before accessing your pension pot without facing penalties. Understanding this age threshold is crucial for planning your retirement effectively, as it impacts when you can start drawing your pension benefits and how much you can expect to receive. Always keep an eye on future changes and seek independent financial advice to navigate your pathway to retirement confidently.

What are the contribution limits for pensions?

When navigating the world of pensions, it’s essential to understand the contribution limits that help guide your savings strategy. In the UK, the annual allowance generally allows you to contribute up to £60,000 tax-free to your pension pot, which may vary depending on your earnings and any previous tax relief you’ve claimed. If you find that your earnings exceed certain thresholds, this allowance may be tapered down, potentially limiting your contributions further. Additionally, it’s important to remember that any unused allowance from the previous three years can be carried forward, providing you with a valuable opportunity to boost your retirement savings tax-efficiently. Being proactive and aware of these limits ensures you can maximise your pension contributions while making informed decisions for your financial future.

Is there a maximum age beyond which I must retire?

Retirement is a personal journey, and there’s no one-size-fits-all answer to the question of the maximum age for retirement; it ultimately depends on your circumstances and aspirations. While some may choose to retire in their sixties, others find fulfilment in working well into their seventies or even beyond, mainly if they are passionate about their careers or wish to maintain their financial independence. The key is to evaluate your financial situation, health, and life goals, allowing you to make an informed decision that aligns with your unique needs and desires. With the proper guidance from a financial expert, you can explore all your options, ensuring that your retirement reflects your vision of success and happiness.

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A Personal Pension offers a flexible and tax-efficient approach to saving for retirement, allowing you to benefit from Income Tax relief at your highest marginal rate, which can be as much as 45% on your contributions. However, there are limits on the amount you can save. Your contributions receive immediate basic rate income tax relief that boosts your savings by at least 20%, and you can reclaim additional tax relief at higher rates through your self-assessment tax return, with your investments growing free from personal taxes. It’s wise to begin saving for retirement as early as possible, as your pension will diversify investments across various assets such as cash, fixed interest, shares, and property, resulting in better long-term outcomes the longer you invest. Withdrawals from your pension can begin at age 55, increasing to 57 in 2028.

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Why Choose Fintegrity

Our services are designed to provide peace of mind and financial security for you and your loved ones.

Personalised Approach

We tailor our strategies to meet your unique financial situation and goals.

Experienced Advisors

Our dedicated team comprises highly skilled professionals with a wealth of experience in financial planning.

Proactive Planning

We emphasise innovative strategies designed to enhance your investment performance while effectively reducing the burden of taxes.

Transparent Communication

We ensure clear and straightforward communication, keeping you informed every step of the way.

What Our Clients Say

Cath Addis 2 months ago

We have used Neil for pension and estate planning. He has always been very easy to talk to, explaining all the options very clearly. We couldn't be happier and trust him completely.

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Chris Boddice 4 months ago

Neil has been very helpful in reorganising my finances and has given me confidence that I am making the right choices. Great at explaining options and implications and at asking questions that make you think hard about what you really want. Recommended.

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Kay Cooper 6 months ago

Neil has been fantastic in helping me sort out a long-term financial plan. His knowledge and advice has allowed me to stop worrying about the future and actually make my money work harder for me. Highly recommend!

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Peter Niven 6 months ago

I am due to retire in August this year, plus I came into a substantial legacy from my late mother, so I needed financial advice. He has met me several times and prepared a financial plan for me. I have complete trust in Neil and that is, of course, vital when dealing with large sums to be invested for one's retirement. In addition, he is easy to deal with, and explains quite complicated issues clearly and carefully. Altogether, he is a pleasure to work with and have 'on one's side'.

I am so grateful for everything, Neil (including the ongoing advice and support).

Peter

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Rosamund Skinner 7 months ago

I was recommended to contact Neil Jenkins of Fintegrity IFA earlier this year, because I wanted financial advice and help to manage my financial affairs and my modest savings. I met with Neil twice and found him to be very friendly, approachable, professional and helpful. If I am honest I have little interest in finances but I do understand the need to make my money work for me, and Neil understood this and was very helpful. He listened to me and asked questions and made suggestions, then proposed a plan for my savings that met my requirements. He organised this for me very quickly and efficiently and continues to keep me updated. I feel I can trust him and know that he will respond if I have any queries.

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Janine Deakins 7 months ago

My husband and I needed some impartial financial advice with regard to investing some funds following retirement. Neil took the time to establish our plans for future financial outgoings and to assess the level of risk we were willing to engage with. He explained our options clearly and without any pressure to proceed. We found Neil to be professional, friendly and knowledgable in his field and were confident to go ahead with his recommendation.

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Henry Whelan 7 months ago

Neil was exceptional in helping me decide on life and illness insurance for me and my partner. He respected my specific needs and didn't stray from the brief. He was patient, knowledgeable, and ensured we got the right cover without overspending. Highly recommend!

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Greg Power 7 months ago

Neil has been extremely helpful on a variety of financial matters, providing an expert and personalised service. Would highly recommend.

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Megan Davidson 7 months ago

I was recommended Neil by my accountant to help me consolidate my multiple pensions and also give advise on where I would like to be when I retire.

To say the level of service is exceptional would be an understatement. Communication was clear and transparent all the way through with good help and advise and he was always quick to reply to emails or messages throughout the journey.

Would happily recommend to other businesses and people needed financial advice.

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Rich Merritt 2 year ago

Absolutely recommend Fintegrity. Thorough process to understand our situation, and appropriate recommendations for our future financial goals.

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