The revised defined contribution tax regime, introduced in April 2001, allows retired clients to contribute £3,600 to a personal pension without reference to earnings and take advantage of tax relief plus the available tax-free sum
The introduction of the tax regime for stakeholder pensions in April 2001 created an attractive opportunity for retired clients seeking ways to generate income. Now individuals can make modest annual contributions without reference to earnings, and providers and advisers can offer immediate vesting as a tax-efficient retirement income strategy. Immediate vesting personal pensions allows clients aged 50 or more to pay a pension contribution of up to £3,600 gross, benefit from full tax relief, take the 25% tax-free cash immediately and use the remainder of the contribution to generate a ...
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