Rumor has it, that less than half of sole traders pay into a pension, leaving them with inadequate funds and very little options when they reach retirement. But why, when there are so many benefits to having a personal pension?
Sole traders are entitled to 25% tax relief from the government on their contributions to a personal pension. This means that if you pay £100, the government will add £25.
Your pension can usually be passed onto your beneficiaries if you die before you are 75 years old.
Pension flexibility means that if you wish when you reach 55 years (57 from 2028) you can access your pension funds. This includes taking a lump sum of up to 25% of your overall pension fund tax-free.
Merlyn Wealth Management can assist you with setting up and maintaining a retirement plan that reflects your long-term future goals so you don’t have to worry about whether or not you can afford to retire.