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PLANNING FOR RETIREMENTPersonal pensions
Personal pensions which meet that stakeholder criteria must allow transfers
in and out without penalty and their annual management charge must not
exceed 1%. Your retirement income will depend on the final value of
your fund and the level of annuity rates when you retire. Click for further reading |
REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser. |
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The
amount you can put into a personal pension is the higher of £3,600
pa gross or a percentage of earnings that according to your age. For
older people the limits are generous (if you have the money to put into
the fund!). Policyholders in their late forties can pay a quarter of
their annual salary into their pension from pre-taxed earnings, rising
to 35% for those in their late 50s. From age 61, you can contribute
40% of your salary.