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People need to be aware of pension changes
People need to be aware of pension changes
It’s imperative that people drawing a state pension are aware on the effect it may have on their private pension tax, as many people are left unaware of the changes that take place to their finances.
Maidenhead,
Berkshire,
United Kingdom
(prbd.net)
01/10/2012
It's imperative that people drawing a state pension are aware on the effect it may have on their private pension tax, as many people are left unaware of the changes that take place to their finances. Many pensioners get confused and end up paying too much or too little tax, and even more don't realise that property as a pension could be the best option for retirement.
The state pension is taxable, but it will be paid to the pensioner without tax being deducted. This makes things simple for those who don't pay tax, but for those who have other pensions or do paid work it can cause confusion.
In order to put your affairs straight, HM Revenue & Customs must adjust your tax code and take extra tax from another pension that you draw or your employer.
Gill Alton runs Alton Property Partners, offering a residential investment property service to help you build a portfolio for a secure financial future.Alton Property Partners provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. Gill believes that property could be the answer to your pension. She says:
"When planning for retirement a lot of people forget that the money they receive in retirement is also taxable, based on their allowances. With the age you are able to claim State Pension extending and the value of personal pensions being attacked on all sides, having to pay tax on top hurts personally and of course can significantly impact the money you thought you had to live off.
"Taking time to understand your situation and the tax implications is important, as tax planning is always easier if completed in advance of the time when it is required. The clue is in the term 'planning'. One of the reasons I invest in property for my pension is that property can be a highly tax efficient way of saving, as you are allowed to offset costs etc.
"As most would say given the choice they would rather not pay Tax, particularly in their retirement, I would therefore recommend (if you have not already) adding property investment to you retirement planning, and working with an Accountant to ensure you fully utilise every allowance you have to minimise your tax expenditure."
Notes to Editors
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. To find out how property could be the answer to your pension worries, click here. Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market
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About
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors of residential investment property in the UK.
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