Power up your pension 2: A tax tip to spark your savings

Day two of Pension Awareness Week! So, yesterday we explained why expert help can power up your pension .Today we share a real life case study detailing how our retirement experts helped Arsalan avoid paying too much tax on his retirement savings. This is especially important if you’re thinking of taking any of your retirement savings as cash.

How did we help Arsalan save £3,000 in tax?

• Arsalan had a £60,000 pension pot he wanted to take as cash. 
• As he had a yearly income of around £20,000 from his other pensions, taking it all at once would have pushed him up into a higher-rate tax bracket.
• Our friendly retirement experts helped Arsalan save £3,000 in tax with a simple tip: taking his cash over two tax years instead of one.
• This meant his total income for each tax year stayed within the basic rate tax bracket instead of going into a higher one. Read the full case study below:

So – how could Aspire to Retire help you?

🔧  You can use our resource centre as your personal online pensions library

🔨  Our friendly retirement experts can help you, if you’re within a year from taking your benefits

🛠️  And if you are within a year or so from taking your benefits, you can also request a personalised options pack setting out your retirement choices

We’ll be back tomorrow with another case study showing how our retirement experts helped Sofia achieve better retirement results, by bridging the gap between retiring and claiming State Pension. 

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