In recent times with the tough financial situations many of us are facing, it has never been more important to have a pension. It is important to choose a pension plan wisely to ensure that you will have enough money available when you can’t work anymore or don’t want to work anymore and retire. A good pension will help prevent your standard of living from dropping too much if at all when that time comes. The fact that a majority 70% of the population in the UK will live to the age of 75 and that a state pension works out at less than £6,000 a year; shows that you need to consider private pension options.
The money you pay into a pension qualifies for tax breaks. This means that for every £80 you pay it is rounded up to £100 and you can even claim an extra top-up of £20 if you pay a high rate of tax. While your money is in your pension fund, it grows almost completely free of any taxation and once you reach retirement age you can claim a quarter of it as a completely tax-free lump sum. In addition to the tax benefits, a pension, when compared to putting money into another form of savings account like an ISA, is better if you happen to die before you reach retirement age as the money will be paid to your next of kin in the form of a tax-free lump sum. Money tied up in an ISA is calculated as part of your estate and most will then be taken to pay the state.
Why Should You Consider Nutmeg?
When choosing a company to handle your hard earned money and help invest it wisely, you want to do business with a company that are knowledgeable and who are also trustworthy. Although Nutmeg are a relatively new organisation, they are fully endorsed by the UK government and regulated by the FCA and offer their customers transparency.
Nutmeg have tried to make things as easy as possible for you, by offering a service where you can handle and manage all your investments in one place and you only ever have to pay one free a year for this privilege. An expert team will ensure that your investment portfolio is completely diversified and tailor-made for you and you alone and it will be tweaked over the course of time when as and when the need presents itself.
“The Nutmeg website is really easy to use. When investing in a pension you simply say what type of investment account you want, add in your age and retirement age and it then tells you how much you will need to contribute.”
In order to help you feel in control of your investment and how it is performing, you can track how well it is doing and what your hard earned cash is getting you. You don’t even have to wait until office hours as you can call or check online any time 24 hours a day, 7 days a week.
The mere thought of looking into, researching and choosing a suitable retirement fund to invest can be overwhelming. However, when you are older and and need money to keep up your standard of living but can’t or don’t want to work.
If you want to know a bit more about Nutmeg’s pensions have a look at the video they have put together below.