Top Ways to Increase Your Pension Savings

1. Top Ways to Increase Your Pension Savings You certainly deserve a comfortable retirement after years of dedication as a physician. Building strong pension savings is one of the best ways to secure that future — and it’s never too early or too late to start. Working with chartered accountants for doctors can help you create the right strategy, making sure you maximise your allowances and benefits and get the most from your pension pot. Here’s how you can strengthen your pension savings and work towards a financially secure retirement. Start early to give your savings time to grow. Some doctors put off contributing until their practice is well established and they have surplus income. While understandable, delaying contributions can limit the long-term growth potential of your savings. Keep in mind that a pension is an investment that rewards you for starting early. The earlier you begin contributing to your pension, the more your investments can benefit from compound growth. Use pension contributions to benefit from tax relief. One of the biggest advantages of paying into a pension is the tax relief you receive. Most UK taxpayers enjoy a 20% top-up on their contributions. For example, if you put £100 into your pension, it actually costs you just £80.

2. Higher-rate and additional-rate taxpayers may be eligible for even more tax relief, but you may need to complete a self-assessment to claim it. Experienced accountants for doctors can guide you through this process and help you avoid missing out. If your employer offers a salary sacrifice scheme, this could also provide an opportunity to boost your pension and lower your tax bill. It’s worth asking what options are available. Make the most of your annual allowance. The annual allowance is the maximum amount you can contribute to pensions each tax year without facing a tax charge. For the 2025/26 tax year, the limit is £60,000 or 100% of your earnings (whichever is lower). High earners and those who have started drawing on their pensions may face reduced allowances. Maximise your workplace pension. Do you have access to a workplace pension scheme? Both you and your employer can contribute to the pot to boost your retirement savings. For qualifying earnings, the minimum total contribution is 8%, with employers contributing at least 3%. Manage your personal allowance carefully. For 2025/26, the personal allowance remains at £12,570. However, if your income exceeds £100,000, this allowance is gradually reduced. Skilled accountants for doctors often recommend using pension contributions to reduce your adjusted net income and reclaim lost personal allowance. In some cases, this strategy can secure tax relief at an effective marginal rate of 60%, making pension contributions even more valuable. Get advice from accountants who understand doctors’ needs. Allenby Accountants offers dedicated accountants for doctorswho understand your unique financial needs and challenges.

3. To learn more or book a consultation, call 0208 914 8887 or visit AllenbyAccountants.co.uk to request a callback or a personalised quote.