Short-term prospects

Restricting tax relief to 20% on personal contributions and taxing these people on pension payments made by their employer, from April 2011 onwards, removes the key attraction of locking money away until retirement. However, there are some short-term opportunities, even for high earners, to pay in substantial pension contributions in advance of 2011. Members of new group pension schemes can continue to receive higher rate tax relief on all contributions, as long as the new scheme meets certain requirements. This means many high earners have the opportunity to get considerable tax-efficie...