Boost your pension by 258% with this one clever trick

30 July 2014

goldengirls No, it’s not a dodgy Facebook ad – it’s TRUE. People in their 50s and 60s can stand to triple their pension pot by joining new company pension schemes and boosting their contributions.

Many older people don’t bother with new pension schemes, thinking that they’re too old to get the benefits. But new pension reforms mean that they can up their contributions by 258% in just a few years and take out all their money without paying any tax. Woohoo!

Here’s how it works. In the last 2 years companies started automatically putting their employees on a pension scheme. Once you’re enrolled, your contributions are deducted from your payslip, your employer contributes something and you get tax relief from the government.

But people who were over 50 tended not to bother with it. WRONG.

If you do it, under the new reforms you can take all your wonga out of these schemes when you retire, rather than bothering with boring, stifling annuities.

Here's the maths. (Theoretically.)

If you earn £24,000 a year this year, make an increase in contributions in 2018, and get a small pay rise every year - and there is a rate of 5 per cent annual growth - a 55-year-old could make £14,134 by the age of 65.

So get on it, silver foxes! That cruise ship buffet is waiting…

TOPICS:   Banking   Investments   Government


  • someone u.
    This needs more explaining to make sense. And taking cash out of your pension instead of buying an annuity is NOT tax free. Its taxed as income.
  • weenie
    The first 25% is tax free, the rest isn't

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