Its been a busy start to 2017 for all at First Payroll, and we've been working hard to expand our range of services to better serve a modern flexible workforce. With the auto-enrolled workplace pensions now available in many workplaces in the UK, we wanted to make sure we provide a similarly all-reaching retirement planning solution, which is offered to all clients. We're pleased to announce that FPS will now offer a pension* to workers who use our payroll services.
So, what is a pension and why should you be thinking about it?
A pension is a way of saving money over a long term, with tax relief. Unlike other types of savings, you gain tax relief on the money you pay in, whereas with an ISA, the tax relief is only on the interest earned. Because the money you pay into your pension is invested, it grows throughout your career and then provides you with an income in retirement. Generally, you can access the money in your pension pot from the age of 55, and at the time of writing you can usually take up to a quarter of your pension savings as a tax-free lump sum upon retiring.
The Government's Money Advice Service claims that more than half of people in the UK either aren’t saving at all for their retirement or they aren’t saving nearly enough to give them the standard of living they hope for when they retire. The advice from the Treasury is clear: Don't rely on the state pension alone for your later years, or you might have to seriously downgrade your expectations of what you'll be able to afford in retirement.
If you want to know more about the pensions we offer, see www.first-payroll.com/pensions, or give our team a call on 0333 666 1510. Note that First Payroll staff are not qualified to give specific advice on savings or investments, and we recommend that you consultant an Independent Financial Advisor (IFA) before committing to any pension or savings plan.
*selected clients only