Tax-exempt growth an often overlooked aspect of pensions

Despite the recent attack on private pensions through the pensions levy, pensions are still the most efficient way to provide for income in retirement.

Most people focus on the tax relief available to pension contributions but overlook the fact that growth within a pension is tax exempt.

Over the longer term, the exemption attributable to this growth can, depending on the investment performance of the fund, be of more benefit than the initial tax relief on the contribution.