I earn around £170,000 a year and understand that I am now restricted in the amount I can contribute to my pension. Are there other ways I may be able to save for my retirement and get tax relief?

The maximum amount an individual can pay into their pension each year, £40,000 for tax year 16/17, Is reduced by £2 for every £1 you earn above £150,000, to a minimum contribution of £10,000.

There are various ways of saving tax-efficiently outside pensions, including ISAs, where there is no tax to pay when you take money out, Venture Capital Schemes (VCTs), where you receive income tax relief on investments and no tax to pay on income or growth, and Enterprise Investment Schemes (EISs), where you receive income tax relief and capital gains tax deferral on investments and there is no tax to pay when you take money out.

However, VCTs and EISs are considered to be higher risk investments and are not suitable for everyone. Their performance varies greatly and it is important to carry out thorough research and due diligence before investing.

Working with your tax adviser, your MHA MacIntyre Hudson Wealth Management IFA can recommend tax-efficient ways of saving for retirement, whether within your pension or other tax-efficient vehicle, that suit your circumstances and financial goals.

Advisory FAQs

Wealth Management FAQs