5

Pensions – under the hood

The variety of options you have and choices you can make to reduce your pension gap, at whatever age, will depend on the type of pension you are considering. This chapter introduces the main types of pension available to you.

Tax relief limits

The main reason to buy a pension as opposed to any other form of investment is the availability of tax relief.

There is no limit on the amount of money you can save in a pension scheme or the number of pension schemes you can save in – although there are limits on the amount of tax relief you can get.

You will get tax relief on contributions up to 100 per cent of your annual earnings. So if you put £1,000 net into your pension scheme, the tax relief the Government gives you on ...

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