Could I Boost My Pension Fund?



Posted on: 21st July 2022

It makes perfect sense that you would want to take every opportunity to provide a better retirement for yourself and want to ensure that your pension fund provides the bulk of the money that you will live peacefully on retirement.

As well as making regular contributions to your fund, the smart thing would be to take any opportunity to boost its value. The best course of action is always to consult with independent financial advisers Cheshire before committing to any set plan to see the outlook, but here are some things that may apply to you that you can discuss.

Make a Pay Rise a Pension Rise

If you are a member of an employer-sponsored scheme, contributions will automatically increase every time your salary increases. If you are not on an employer scheme, your contributions will have to be adjusted manually by yourself.

Most providers make this a straightforward process, so the administration should not be too daunting. If you are in the process of starting a new job or having a hike in salary – or if you are self-employed and have a larger boost in earnings – the first thing you should be considering is increasing your contributions to your pension.

Spouse/Partner Contributions

Even if you are not earning at this time, you are still allowed to contribute to your pension – with the maximum amount you can contribute each year being £2,880.

The larger benefit of doing this activity is that you will receive the basic-rate tax relief on whatever you are paying in. As you will not be paying tax, this effectively is free money from the government. If you and your spouse or partner are not earning any kind of income, this is a concession that is well worth taking advantage of.

Keep Investing After Retirement

Many people make the classic mistake of thinking that their fund cannot get any better once working has ended and income from the accrued pension begins to be taken.

If you are still earning some money – especially from work in a part-time capacity or from consulting positions – you can still make payments into your pension and benefit from the tax relief even after you have started drawing flexibly from your fund. Granted, you are limited to gross contributions of £4000 each year and contributions must come from the earnings.

Even when not earning and unable to contribute, you could still look at maximising your investment returns on your remaining funds. An effective income strategy being assembled could benefit from long-term investment growth from the remainder of your fund.

These are some avenues you can discuss with independent financial advisers Manchester as part of your pension advice Manchester.

Contact the team at Haven IFA today to discuss retirement planning Cheshire and options with your financial future.