Overview

Important information

Legal & General has produced a number of interactive calculators aimed at helping your clients to calculate tax relief or work out pension requirements, not only for themselves but for members of their family as well.

Your client can contribute, and receive tax relief on £3600, or up to 100% of your earnings in a tax year if that is greater. The law and tax rates may change in the future and the value of tax relief will depend on your client's individual circumstances. If total contributions paid either by your client or on their behalf exceed an amount known as the Annual Allowance (£235,000 in the 2008/2009 tax year) then HM Revenue & Customs will impose a tax charge of 40% on the excess contribution. Contributions paid in the tax year in which the benefits are taken under a pension plan do not count towards the Annual Allowance.

If the total benefits from all registered pension schemes exceed your client's Lifetime Allowance (LTA) a tax charge would be payable. The standard LTA is £1,650,000 for tax year 2008/2009 but it may be affected by their personal circumstances. Where your client's LTA is exceeded, the excess will be subject to a tax charge.

Stakeholder Pensions: Contribution Calculator Simply enter the amount of pension required (either as an amount in today's money, or as a percentage of salary) and the calculator will work out how much your clients need to consider paying to achieve their required retirement income. Or, if you prefer, enter the proposed monthly/single contribution to calculate the income your client could expect to receive in retirement.

Stakeholder Pensions For Families: Kiddie Calculator Anyone can pay £3,600 gross* into a stakeholder pension for their partner, children or grandchildren - even if they are not earning. Our Kiddie Calculator will help your clients see how investing their monthly child benefit can get their children's retirement off to a headstart.

* see details contained in the Kiddie Calculator page.