The first £1 you put in your pension pot earns you the most and that is why It is better to put a little bit in from an early age rather than loads in right at the end.
In the UK you can have a pension even if you don’t have any earnings and if you pay into it the tax man gives you an encouraging bonus. For every £100 you pay you get a £25 bonus. It is very generous offer so there are limits but you should be exploiting this offer to the max if you can afford to. (You pay £2,880 and get a £720 bonus making a total contributing of £3,600).
Many families make the mistake of allowing all the pension savings to accumulate in one person’s name. Usually the one who is working full time because they get to join a company pension plan, but it is a mistake not to equalise the pension. When you get to retirement you will both be allowed to have some tax free income but if you haven’t arranged the income to be split between you then one allowance will be wasted while the other person gets hit with unnecessary tax.
One of the biggest advantages we have is that we have seen successful strategies and some stinkers. Let us help you avoid the pitfalls we’ve dragged others out off and set you up with a good plan that serves you well.