Standard Life claims personal pension plan holders are not claiming full tax relief
A leading pensions and insurance provider has said that Britons are only getting some of the tax relief which they are entitled to.
Many Britons saving through personal pension plans are only receiving half of the tax relief they are entitled to, Standard Life has claimed.The provider stated that the onus is on the individual personal pension plan holder to re-claim higher rate relief provided they are eligible.
It has been alleged that some Britons miss out on these benefits because of apathy, while others simply do not realise that the responsibility rests with the individual.
However, Standard Life has revealed that from April 6th 2010, the government is to reduce the time limit for making these claims from almost six years to just four years.
Andrew Tully, Standard Life's senior pensions policy manager, explained that higher rate tax relief is an "exceptionally valuable benefit but, despite that, many people are not aware they need to ask for this extra relief".
He added: "Claiming your tax is straightforward as you simply have to write to your local tax office. But the clock is ticking, so taking action now could save you money."
Meanwhile, the Office for National Statistics (ONS) recently announced that the worth of special top-up payments employers made to their pension schemes almost halved between 2006 and 2008.
The value of these payments fell from a peak of £13.2 billion to £6.8 billion, the ONS claimed.
Posted by Tobias Bluth
© Copyright
Related Articles
- Personal pension plan provider Prudential claims gender gap is growing - 17th February, 2010
A leading personal pension plan provider has revealed that the pension gap between men and women has continued to grow.
According to the Prudential Class of 2010 retirement survey, a woman's expected pension this year is £7,424 less than a man's, while women's pensions have fallen by 11 per cent since 2009... - Pre-Budget report damages the SIPP market - 22nd February, 2010
The pre-Budget report dealt a potential blow to the self-invested personal pension (SIPP) market with its reduced tax incentives on personal pension contributions for Britons earning £150,000 or more, the FT Adviser reports.
New rules have since been implemented on pensions for those earning in excess o £150,000.
Under the new legislation, tax relief on pensions will be slowly eroded until, at an income of £180,000 or more, investments into pensions will only warrant tax relief at 20 per cent.
This means high-earning Britons may now be paying 40 per cent or 50 per cent tax on their income at retirement, but may only receive 20 per cent tax relief on their pension contributions... - Expert says SIPPs are not necessarily the best savings option - 23rd February, 2010
There is not a definitive answer as to whether a self-invested personal pension (SIPP) is a better savings vehicle than an individual savings account (ISA), a personal finance expert has stated.
Francis Klonowski, principal of Klonowski & Co, explained to moneywise.co.uk that the decision will often depend on the particular needs of an individual... - Moneyfacts.com reveals that personal pension plan returns have decreased by 60 per cent - 9th February, 2010
A financial advice website has stated that the average personal pension plan return has fallen by 60 per cent in the last ten years.
Moneyfacts.com has attributed the trend to falling stockmarkets and annuity rates... - LV= offers Britons protected retirement plan with advantages of an SIPP pension - 9th February, 2010
A leading insurance provider has unveiled a so-called protected retirement plan (PRP) with the full investment options available under a SIPP pension.
LV= said that it's first fixed-term retirement product has been created to offer consumers breathing space in the initial stage of their retirement... - Investec launches new SIPP pension with 'market leading' interest rates - 12th February, 2010
Investec bank has announced that it will pay interest of 2.5 per cent on its pension and trust reserve account, myfinances.co.uk reports.
The bank has hailed the investment plan, which holds the cash element of a Self Invested Personal Pension (SIPP) portfolio, as having one of the most attractive rates on the UK investment market... - Rowanmoor announces strong SIPP pensions performance - 15th February, 2010
The UK's largest independent small self-administered scheme (SSAS) provider has revealed that its sales have almost doubled in the first quarter of its financial year.
Rowanmoor Pensions said that sales in the final quarter of last year increased by 88 per cent across its self-invested personal pensions (SIPPs), SSAS and family pension trust products... - Cofunds set to unveil new personal pension plan - 18th February, 2010
It has been announced that Cofunds is joining forces with Suffolk Life to launch a personal pension plan on the platform in the first quarter of 2010, ifaonline.co.uk reports.
Though the wrapper is still in its developmental phase, it has already been revealed that the charging structure will favour Britons who use other elements of the Cofunds platform, such as ISA wrappers, instead of the personal pension plan... - NAPF wants government to simplify reforms to personal pension plans - 25th February, 2010
An industry lobby group has called on the government to cut generous tax breaks on wealthy personal pension plan holders in the next budget.
The National Association of Pension Funds (NAPF) claimed that by slashing tax breaks the exchequer would save millions of pounds, while it would also simplify complex rules on saving which are due to be enforced in 2011... - Rowanmoor launches new online service for its SIPP pensions - 11th February, 2010
The UK's largest small self-administered scheme has launched an online demonstration system for SippView, its web-based service for its SIPP pensions, FTAdviser.com reports.
Rowanmoor Pensions has created an online resource which enables clients and advisers to view information about their SIPP pensions, such as valuations and fees...