Already saving?
It’s great that you’re already saving, but are you saving enough?
Could you save more?
You might have heard about the retirement savings gap. It's about people not saving enough for their future. If you can save more now, there's less chance this could affect you.
There could be other things you want to save for, for example, a child’s wedding or university costs. Let’s see how you can help yourself save enough.
Sometimes there are ways to save a bit more by looking at what you pay out.
Remember your savings opportunities
| Let’s look at how you’re saving now and see if your money is working hard for you. | |
|---|---|
| Your employer's pension payments | Are you making the most of your employer contributions ? Some employers match what you put in, up to a certain level. So, if you increase what you pay, so could they. |
| Pension tax relief | When you pay into your pension the Government boosts your contributions by giving you back the tax you would have paid on your eligible contributions, known as pension tax relief. The relief is based on the rate of income tax that you pay. Depending on the type of scheme, you might have to claim extra tax relief, not claimed by your scheme, through your tax return. |
| Your ISA allowance | The Government sets the amount you can pay into an ISA each tax year, free from UK tax. The amount you pay into an ISA this tax year is not affected by how much you would have paid in previous tax years. Any unused ISA allowance cannot be carried over to be used in a new tax year. For further information please look on HMRC website. |
| Your saving accounts | Check that your savings accounts have the best rate of interest you can find. |
| Other Allowances | HMRC rules allow you to earn interest without being taxed. |
Boosting your savings
One way to boost your savings is to try and save any extra money you get. If it lingers too long in your current account, you might spend it.
You can give your pension a boost, with an added incentive from the tax man, if you’re lucky enough to receive any one of these:
- bonuses
- windfalls or winnings
- overtime
- an inheritance or gift
- other savings from your bank or building society.