Friday, May 27, 2011

Beat The 0.6% Pension Levy

The following are some ideas on how to reduce the impact of the new levy on pension schemes.

1) Reducing the contribution charge or annual management charge on your existing pension would offset some/all of the new levy

2) If you can afford to increase your payments to your pension (subject to Revenue limits) this increase could negate some/all of the levy in the form of tax relief on the higher contribution.

3) If you have a Pension Retirement Bond (Buy-Out-Bond) and you have reached the age of 50 you should be able to ‘mature’ this, take as much tax-free-cash as you can and use the balance in accordance with the rules of the original scheme.

Low Cost Pension Products

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