BEWARE 1

To qualify for tax relief in the current year, contributions must be paid by 5th April 2010. This year, however, the 5th April falls on Easter Monday, so in effect pension contributions must be paid by Thursday 1st April.

 BEWARE 2

From 6th April 2010, the earliest retirement age is being raised by HM Revenue & Customs from 50 to 55.

This means that if you are over 50 but under 55 by 5th April 2010, you only have a few months left to decide whether to take any benefits (tax free cash lump sum and/or income) from your Personal Pension. You need to make your decision as soon as possible, so that there is enough time to process your benefit request - this can take several months to finalise and needs to be completed by 5th April 2010. If your request is not finalised by 5 April 2010, you will lose the opportunity to take any benefits until you are 55.

Any benefits you have already chosen to take from your Personal Pension will continue after 6th April 2010, regardless of your age at that time. From 6th April 2010, however, you will not be able to commence any new benefits until you are 55.

You may still be able to take your benefits before age 55 in exceptional circumstances, for example if you are unable to work due to ill health or if you have built up 'rights' before 6th April 2006 which have a 'protected low pension age'. These exceptions will be remaining in place after 5th April 2010.

If this is an issue for you, you need to act now!

FINALLY

This year's annual allowance for contributions is £245,000, but there are new regulations for tax relief on contributions for "high earners".

If you need assistance with any of these issues, please call us!