Pension as an investment and tax planning tool
Feb 14th, 2007 by complex001
New developments in FSA rules on pensions and pension funding have triggered a new generation of pension investors. These are investment savvy successful investors, not looking at a pension as a solitary source of retirement but as an effective investment vehicle. The increase limits on contribution and the removal of up front charges and the downturn of regular charges has encouraged this.
In addition the ability for higher rate tax payers to reclaim 40% relief which equates to instantaneous 67% growth. The investments future growth being free from income, corporation, and capital gains tax. Lastly the range of funds ongoing is now the province of successful external fund managers in whom investors confidence is far higher that in those of insurance company fund managers.