Brits need to make sure pension pot is tax efficient
UK workers are being encouraged to make sure they are saving for their pension in the most tax-efficient manner.
According to Unbiased.co.uk, people in company pension schemes are missing out on huge sums of cash each year as they neglect to save in the best way.
The firm claims that people should take advantage of Additional Voluntary Contributions (AVCs) which benefit from the same tax relief as contributions made into the main pensions scheme.
It added that AVCs could save UK workers a collective £720 million each year.
David Elms, chief executive of Unbiased.co.uk, stated that failing to save for retirement has become an increasingly large problem for people in the UK, an issue which is being compounded by the credit crunch.
He advised people to have a chat with an independent financial advisor about the best way to save for their future.
Last week, the National Association of Pension Funds stated that improving knowledge of pension offerings is the best way to convince people to sign up company schemes as it will give them more confidence.
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