This episode of the Your Recipe for Financial Success podcast was published on 28th January 2021. You can listen again by heading to our Episodes page, or on your favourite podcast player.

In this episode, Becky, Emma and Julie are talking about a staple in any financial cookbook – pensions.

Episode Highlights

Here is everything you need to know about pensions, at a glance:

• You can have a pension from any age – even an under 16 can have a pension. You can’t access your pension until the age of 55, however, no matter what age you started paying into your pot
• You can pay in to a pension until you reach the age of 75
• Money Purchase Pensions = the more you pay in the more you get out at retirement
• There is no set amount that you have to pay in to your pension pot. There are, however, limits on the maximum amount you can pay in any one year; either £40,000 or your entire earnings if less than £40,000
• You get 20% tax relief on any payments you make into your pot. So if you make a contribution of £100, £125 actually goes in to your pot
• When it comes to withdrawing money from your pension pot, you can normally take 25% as a tax free lump sum. The remaining 75% will be taxed at your marginal rate of income tax.

Hopefully we have filled you up with the basics of pensions and you feel more confident to take control of your pension pot. If you would like to get your teeth into even more financial recipes, check out our other podcasts on our episodes page. Don’t forget about our Facebook page too where you can ask questions and join in discussions about all of our topics!