The past eighteen months have demonstrated that the unexpected has become the norm and that this new ‘normal’ is changing many of our expectations. It’s easy to be distracted by the events taking place around us and to lose focus of our priorities. So, it’s more important than ever to make sure your money works harder for you.
Although having a wide range of options is a good situation to be in, it can be difficult to make the right choice. With so many options, how do you know which is right for you and your financial goals?
ISA
The amount you can save in an ISA is a generous £20,000 (2021/22) which you can split between stocks and shares ISAs, cash ISAs, Innovative finance ISAs and Lifetime ISAs.
This is where we can help. We’ll find out your objectives and get to know your appetite for investment risk. Then we’ll use our expertise to help you decide which option is best for you.
Use it - or lose it forever
With so much to think about at the moment, it’s important you remember to use your 2021/22 ISA allowance by 5 April 2022. We will make sure that you utilise the annual tax allowances that you are entitled to which, once gone are gone forever.
Pension
Don’t miss out on the tax relief available to you while it’s still available.
The government currently provides tax relief on your annual pension contributions to encourage you to save for your retirement. This means you either benefit from additional money going into your retirement fund, or you benefit from additional money and get tax back that you pay on your income.
The way it works will depend on the way your pension scheme is set up. It could mean that a £1 contribution only costs you 80p if you’re a basic-rate taxpayer, as little as 60p if you pay higher-rate tax and just 55p if you pay additional-rate tax.
However, because this scheme is so attractive, there are limits on how much you can invest, based on your earnings. For that reason, it is important to get professional advice from us so that you don’t contravene these rules.
With so much to think about at the moment, it’s important you remember to use your personal allowances by 5 April 2022
