It is never too early to save extra for retirement, and AFPS15 makes it easy for you to improve your pension by purchasing Added Pension.
Because this is such a popular topic we thought we would share some commons Q&As with you each day this week, starting with...
Q. Surely buying Added Pension will tie us in to extra payments for years?
A. No. Unlike the AFPS 75 or AFPS 05 Added Years contracts, which committed members for the duration of their service, each AFPS 15 Added Pension contract lasts up to a year. Contributions can be as little as a £300 lump sum or £25 per month if the member prefers to pay by instalments throughout the year. You decide what you can afford – and remember, because it comes out of pay before tax, it reduces your tax liability. If the member is a basic rate tax payer, and the contribution totals £1,000, they will, effectively, pay only £800 for the Added Pension as their tax bill will be reduced by £200.
Check back tomorrow for the next question in this Q&A series