As lockdown restrictions across the UK begin to ease, it can easily feel like April has replaced January as the unofficial start to the whole of 2021, rather than a new tax year kicking in. With many making plans for the end of lockdown, including a return to gyms, PSG Wealth Management MD, Paul Gilsenan, shares tips to keep your finances fighting fit.
Frequency vs pounds
Anyone who has stepped foot in a gym will be familiar with two popular training styles – lots of reps with a relatively low weight or less reps of a heavier load. When in the gym, it’s your goal that determines your training path. In finance, age is often the biggest contributing factor.
While retirement can feel a lifetime away, starting younger, even with a smaller amount, can reap greater rewards in the long-term. However, if retirement is coming up fast, it is time to change tact and look at ways to maximise contributions to ensure a healthy financial future.
Be sure to take breaks
Any fitness fan knows how beneficial breaks can be and the same can be said when it comes to tax. All personal pension contributions get an automatic top-up for basic rate tax relief, paid directly into your plan by your pension provider.
For instance, a basic rate taxpayer who invests £4,000 as a lump sum into a pension will get £1,000 tax relief from that first day. Undoubtedly a break worth taking!
Review your plan
The best plans, fitness or financial, are those that are reviewed on a regular basis. Working with professional advisors is a great option to ensure that the nature of your investments still matches your goals and ambition requires regular check-ins.
The value of an investment with PSG Wealth Management will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.