Due to personal circumstances, we were unable to record this week's episode of the Money Confidence podcast. Here is a repeat of our most popular episode to date.

KEY TAKEAWAYS

A pension is one of the most tax-efficient ways to save for your retirement, but it can't usually be accessed before age 55. This will increase to age 57 in 2028.

When you contribute to a pension, the government will give you tax relief on those contributions. If you make a contribution into your pension from your net pay (after tax and National Insurance has been deducted), basic rate tax relief (20%) will be automatically added to your pension at source. Any growth within the pension is tax-free.

There are generally two types of pension: A Defined Benefit Pension where you get a guaranteed income for life once you reach the Scheme’s retirement date and a Defined Contribution or Money Purchase Pension, which is invested in the market and can go up or down in value. With a typical Defined Contribution plan, you can access the funds from the standard minimum pension age (currently 55) and there are various ways you can access these funds. Typically, 25% of the pot value is tax-free and the remaining 75% is taxed at your marginal rate of income tax.

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

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