Can you rely on the State Pension?
For men born on or after 6 April 1951 and women born on or after 6 April 1953 the State Pension is expected to be £159.55 a week1.
That is only likely to provide for your very basic needs and it might need to last you a long time.
If you want to enjoy your retirement to its fullest, and for as long as possible, pension savings to top up your State Pension make sense.
All pensions offer tax advantages for savers, and once you've reached the age of at least 55, you can normally take up to 25% of your savings back out as one or a series of tax free lump sums. The rest is normally taxed as income at your marginal rate(s) of income tax
Please remember the value of your investments and any income from them can go down as well as up. The value of your pension savings may be less than you paid in.
Before you choose a SIPP, make sure you understand its aims and risks. Alliance Trust Savings does not give advice. A SIPP requires active management and investment expertise. You should make sure you review your investments regularly. You normally cannot take an income from your pension until age 55.
Laws and tax rules may change in the future without notice. The information here is our understanding in April 2018. This information takes no account of your personal circumstances which may have an impact on tax treatment.
1 Source gov.uk March 2018 - The new State Pension