Saving for your Retirement You will have read, spoken and heard lots of comments about saving for retirement and effective ways to do so or not to do.   Although at times receiving bad press, Pension schemes still represent the most tax effective form of saving for retirement. Low inflation and consequently lower investment returns mean that investments appear to grow slower than one would wish, but it is a sad reality and as the saying goes- No Pain - No Gain. This manifests in the amounts required to save for retirement needing to be a serious commitment to save a realistic percentage of Salary towards retirement. Pension schemes are simply a fancy "wrapper" giving important tax advantages to money paid into pension shemes. Within the bureaucracy of Pensions, there are many different labels all dealing with types of pension scheme e.g. Stakeholder, Company Schemes, Personal Pensions, etc. Pension Legislation has changed significantly over the years, but the bottom line remains the same. If you set aside some of your money now to save for your retirement, the amount that you pay in will have the tax back that you have paid on the amount paid in pension contributions. To higher rate tax payers this is at the highest rate. Having enhanced the contribution on day one by the Inland Revenue, the fund accrues free of Capital Gains Tax. The Pension "Pot" of savings that you accumalate during your working life is focussed on the accumalation of funds. You do not have to make any choices about how the fund is used to acquire your pension income until you attain retirement age, which is itself a variable date selected by you. One of the important changes in recent years deals with who is allowed to pay into what schemes. It all used to be very complex, it has got simpler (and is is set to be simplified again) but still needs a lot of explanation and interpretation. What used to be a Taboo, e.g. you never used to be allowed to be a member of your employers scheme and have a private pension, wheras now under some circumstances it is now allowed. As this is an important but complex issue we thoroughly recommend a meeting to discuss your personal requirements.

To Save or Not to Save ... When you reach retirement age you will either be pleased that you saved for your retirement or sorry that you never. You will not at that time be able to anything about it - either way. It is therefore important that you set aside some of your income whilst you are working to fund the years that you aim to enjoy. However without income, the trials of day to day existence are not a pleasurable experience. Retirement should be enjoyed NOT endured.