When we think about pensions, we often picture something distant – funds locked away until retirement. But what if your pension could offer financial advantages today, not just decades down the line?
A Personal Pension is more than just a retirement fund. It’s a flexible, tax-efficient investment vehicle that can support your financial goals before you even consider retiring. The sooner you start thinking about your pension, the more opportunities arise – not just for your future self but for your current financial well-being.
At Fogwill and Jones, we help individuals like you make the most of their pension savings today while planning for a secure tomorrow.
What is a Personal Pension?
A Personal Pension is a type of pension that gives you greater control over how your retirement savings are invested. Unlike standard workplace pensions, a Personal Pension allows you to choose from a broad range of investments, including stocks, bonds, funds, and even commercial property.
The key advantage? Flexibility – you can adapt your investments to suit your financial strategy.
How Can a Personal Pension Benefit You Now?
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Tax Relief – An Immediate Boost to Your Savings
One of the biggest benefits of contributing to a Personal Pension is the generous tax relief offered by the government. Every time you add money to your pension, HMRC boosts your contributions:
• Basic rate taxpayers: For every £80 you contribute, the government adds £20 (effectively a 25% boost).
• Higher rate taxpayers: You can claim back an additional 20% through your tax return.
• Additional rate taxpayers: You can claim back up to 25% more, making your pension an incredibly tax-efficient way to save.
This means that by using a Personal Pension strategically, you can reduce your tax bill while increasing your long-term savings.
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A Personal Pension Can Support Your Investment Strategy
With a Personal Pension, you’re not tied to a limited set of investment options. Instead, you can:
• Diversify your portfolio across different sectors and geographical regions.
• Invest in high-growth assets with long-term potential.
• Adjust your investment strategy as your career and financial goals evolve.
For working accumulators, this level of control means your pension isn’t just a passive savings pot – it’s an active part of your wealth-building strategy.
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Early Access – A Flexible Retirement Approach
While your Personal Pension is primarily for retirement, you don’t have to wait until your 60s to benefit from it. From age 55 (rising to 57 in 2028), you can start withdrawing from your pension – tax-free on the first 25%.
This flexibility opens up opportunities such as:
• Paying off your mortgage or clearing debts.
• Reducing your working hours and transitioning into semi-retirement.
• Investing in other wealth-building opportunities.
Thinking ahead means you won’t be forced to work longer than necessary – you’ll have the option to access your pension on your own terms.
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Pensions as a Family Wealth Tool
Unlike many other investments, a Personal Pension can be passed down tax-efficiently. This means that instead of being hit with hefty inheritance tax bills, your pension could become a valuable financial asset for your family.
With the right planning, your pension can:
• Support your loved ones in the future.
• Be used as an estate planning tool.*
• Ensure your wealth is preserved across generations.
The Sooner You Start, the More Options You Have
Many people don’t realise just how powerful a pension can be before retirement. By thinking strategically and acting early, you can:
• Reduce your tax bill
• Grow your investments on your own terms
• Ensure financial flexibility for future life changes
• Retire when you want – not when you have to
How We Can Help
At Fogwill and Jones, we specialise in helping professionals and business owners maximise their pensions as part of a wider financial strategy. We offer:
• Personalised investment guidance.
• Tax-efficient pension planning tailored to your income.
• A long-term strategy that balances today’s needs with tomorrow’s goals.
Your pension isn’t just for retirement – it’s a financial tool you can use today. Let’s make it work for you, call us on 01142 588899 or email info@fogwilljones.co.uk to book a consultation and learn more about how we can help you to start planning smarter.
*Disclaimer: From April 2027, under the new inheritance tax rules, pensions will form part of a person’s estate upon death and will be subject to inheritance tax.
