Generous tax concessions make UK pensions very popular

In order to encourage people to save for their future, the UK government has granted generous tax concessions to pensions, making them a popular form of saving.  Where they are made through an employer, pension contributions are paid without deduction of income tax or National Insurance.  Once invested in a fund, that fund can then grow almost completely tax free.

As a consequence, even though there is no compulsion for individuals or their employers to make pension contributions, there is over £1,300 billion in funded pension savings in the UK – which is more than all of the other 24 countries in Europe have in funded pension savings between them!

The advantages

• Employees can contribute up to 100% of their earnings per tax year and get full tax relief (for higher rate taxpayers this is as much as 40p in the £1)
• Employer tax relievable contributions can also be made, subject only to the limit that the combined employer/employee contributions should not exceed the ‘annual allowance’ laid down by the government
  
  

As an Australian or New Zealander you can then transfer your pension fund back home tax free.  So take the opportunity to build yourself a nice nest egg while you're away and have a significant portion of it sponsored by the UK government.

To speak with one of our experienced UK consultants, please contact us on uk@globalcareerlink.com.