Retirement planning and saving for your
retirement will help you meet your future goals and achieve your
desired lifestyle. The main ways you can save for retirement are
through Pensions, ISAs and Investment Funds.
Pensions
A pension is a tax efficient savings plan with the specific
purpose of securing an income for you when you stop working and
reach retirement age. Pensions benefit from special tax treatment -
for every £1 you invest the government contribute a further 25p -
and higher rate taxpayers can claim a further 25p tax relief via
self-assessment.
ISAs
An ISA is simply a tax efficient 'wrapper' that surrounds a
specific investment, such as a unit trust, shares or cash savings
account. They offer attractive long term tax benefits coupled with
greater flexibility than pensions.
Funds
Funds such as unit trusts and OEICs are the types of investment
that you can purchase within ISA and Pension. You also have the
option of investing into funds outside tax wrappers.