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Written on: 09.11.2009 [13:54]
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Punita
Punita
Topic creator
Posts: 4
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I was reading that there were many advantages to the A-day pension reform of 2006, including the ability to save more tax-free. How does this work? What makes it different to before?
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Written on: 12.11.2009 [15:15]
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Chloe
Chloe
Posts: 4
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Well it helped two different groups in very definite ways. If you were at the point where you realised that perhaps you hadn’t saved as much as you should have then the ability to boost your pension pot with savings and investments, such as individual savings accounts was a great advantage. Few people know that under the new rules it is possible to transfer the value of share save incentive schemes offered by employers into a pension scheme - and receive tax relief. Also the pension reform helped younger generations too. The ability to transfer savings and investments is also a bonus for younger age groups. They can now build up tax-free savings in an ISA and then when they receive pay rises and go into a different tax band they can transfer their savings in to a pension with a 40% tax relief.
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