Invest £10,000 in a pension – get up to £4,000 back from the Government
The Government is keen to get us all saving for retirement and a key way of doing that is by offering tax relief on our pension contributions. How much you receive depends on your contributions and tax bracket, but can total thousands of pounds a year.
If you fail to invest in a pension, you are making two major errors. First, you are building up financial problems for when you retire, because nobody wants to scrape by on the state pension alone.
The new state pension is currently just £179.60 a week, which adds up to just £9,339 a year. That is roughly a third of the average full-time national salary, and you only get that if you qualify for the full amount.
Second, by failing to invest in a pension you are throwing away some of the most valuable tax benefits of all. HM Revenue & Customs lavishes pensions savers with rare generosity, so take advantage if you can.
Every year, HMRC hands out almost £40 billion in tax relief on personal and workplace pension contributions, so act now to get a share of that largesse.
