Retirement Planning

Relief at source delivers 20% basic-rate tax relief automatically; higher-rate (40%) and additional-rate (45%) taxpayers claim extra relief via Self Assessment; Scottish rates apply for Scottish taxpayers.

Tax relief on contributions works the same as for employees — relief at source for basic-rate tax, with higher and additional-rate relief via Self Assessment — and the £60,000 annual allowance for 2025/26 applies.

Since the 2015 Pension Freedoms, flexi-access drawdown and Uncrystallised Funds Pension Lump Sums (UFPLS) have replaced most older capped-drawdown rules.

Unlike annuities, drawdown leaves the retiree, not the insurer, holding most of those risks.

Most people build qualifying years through employment, self-employment or NI credits.

With capped annual management charges, low minimum contributions and a default lifestyle fund, stakeholder pensions can support consistent long-term saving alongside auto-enrolment workplace schemes or independently for those without one.

Trustees, who are typically members of the SSAS, must comply with the trust deed and scheme rules, the requirements of The Pensions Regulator and HMRC, and broader pensions and trust law.