Pensions for high earners

Using your ISA allowance

If you are a high earner and feel you are paying more and more tax, you are not alone. Increasing the tax burden for higher earners has been a deliberate policy of successive governments. Higher and additional rate taxpayers now pay about two thirds of all income tax.

More than one in seven income tax payers are currently taxed at the higher or additional rate and the proportion will increase significantly following the freezing of tax allowances and bands until April 2026, with no guarantees beyond that. The thresholds for phasing out the personal allowance and the start of the additional rate tax have both been unchanged since they came into force in April 2010.

Our guide focuses on pension contributions for high earners, helping you plan for your future, including:

• Contribution planning – tax relief on pension contributions for high earners
• Carry forward rules
• Using SIPPs as part of your portfolio
• Withdrawing money from pensions

How we can help

Retirement planning is complex, and has been made even more so by constant changes to the rules. We make it our business to stay up to date with the latest developments, and to help clients take full advantage of the available tax breaks. In particular, we can give guidance on:

• Maximising your pension contributions, using carry forward where appropriate
• Advising whether salary sacrifice could increase the amount invested in your pension at no extra cost to you or your employer
• Managing the move from saving to withdrawing funds from your pension
• Minimising IHT liabilities

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