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Pensions

At Alliance Trust Savings, we understand that choosing the right pension for you can be complicated and confusing.

It is important that you understand what a pension is and what you can expect from your chosen provider.

What is a Pension?

A long term savings plan that helps you save for your retirement.

Tax relief is paid on your contributions, subject to limits, at the basic rate of tax - even if you do not pay tax. Our Select SIPP Key Features document provides more information on tax relief allowances.

So for every £80 you contribute HMRC will top this up by £20

  • Higher rate tax payers can claim even more via their annual tax return
  • Contribution flexibility
    You can pay regular or single contributions with the ability to stop, start, increase or decrease at any time (subject to contribution limits)
  • Capital Gains Tax (CGT)
    Your pension pot does not pay tax on any capital gains.  Interest income can be paid gross and there is no additional tax payable on dividend income.
  • You cannot access your pension 'pot' until you reach age 55
    At that age, you can take a tax free lump sum up to 25% of the value of your pension fund
  • Investment Choice
    This can vary depending on your chosen provider and type of pension you chose but could include pension funds, unit trusts, equities and investment trusts.

Why do I need a pension?

There are lots of reasons why you should consider making contributions to a pension account, perhaps the two most prominent are:

  • Minimum State Pension Age changes
  • Increased Life Expectancy

Who can pay into a pension?

  • You can
  • Your employer
  • Another 3rd party

You can also contribute to a pension account for your spouse, children or grand-children

Types of pensions

There are a number of different types of pension available.  At Alliance Trust Savings we offer Self Invested Personal Pensions also known as SIPPs.

Risk Warnings

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested. Tax rules may change in the future and taxation will depend on your personal circumstances. All investments carry an element of risk, which may differ significantly. If you are unsure as to the suitability of any particular investments, you should seek professional financial advice.