The Redego Pension Scheme – ensuring you and not the taxman benefit from your Contract income

• Funded via employer contributions directly from your contract
• Uniquely avoids Employers and Employees national insurance as well as income tax
• Basic rate taxpayers benefit from 39% instead of 20% relief. Higher rate taxpayers save even more
• No initial set-up fees so all of your money is invested
• Penalty free payment holidays
• Move the pension to a new employer if you change jobs or you can continue to invest personally

The Redego group personal pension scheme offers you a great opportunity for tax planning because payments are made directly from your payroll. This contribution is exempt from the income tax and National Insurance deductions that would apply if you took this money directly as salary and you could therefore benefit from the equivalent of 39% or 48% tax relief depending on your tax rate.

A Flexible Approach

The Redego group personal pension scheme offers complete flexibility so you can take penalty free payment holidays when it suits you. It also offers low admin charges and a wide range of funds to help ensure that your investment reaches its full potential.

The independent advisers at ContractorFinancials can help you to take advantage of the more relaxed pension rules that came into force in April 2006, maximising your investment potential and reducing your tax bill as a result.

If you choose to leave Redego at any time then you can stop the pension or transfer your plan to your new employer. Alternatively, you can continue funding as a personal investment

Using Salary Sacrifice to minimise your tax-bill

Investing via a salary sacrifice agreement is one of the most tax efficient investment options that are available to you. The scheme can allow you to take as little as the minimum wage, cover your fees and then all of your other income can be invested into the pension without any tax implications. Whilst this level of investment may not be sustainable over a long period of time, it can represent a very significant boost to your eventual retirement fund whilst saving you substantial amounts of tax and NI contributions on your income.

You can also invest personally in the pension up to 100% of your remaining salary although this income will be subject to NI deductions.

Important Information

The information provided above is factual and does not consider your personal circumstances. We advise you to read the information provided and decide whether or not the plan appeals to you as we are not advising that the plan is suitable for you.

Redego has instructed ContractorFinancials to set up and administer the plan. As Independent Financial Advisors they will be able to answer your questions and give advice as to the suitability of the scheme. If you are unsure as to whether the Redego scheme is right for you then you should seek expert advice from them.

If you consider joining the scheme then ContractorFinancials will provide you with a personal illustration and a document outlining the key facts of the contract to give you a better understanding of the benefits of the plan.

For more information on the Redego Group personal pension scheme, please visit out Pension FAQ’s

ContractorFinancials

Contractor Financials are Independent Financial Advisors specialising in offering tailored financial solutions to contractors and freelancers.

Call 0845 09 400 60 or email financials@redego.co.uk

The value of investments may rise as well as fall and past performance is not a guide to future returns.