Millions of Brits could claim £720 in free pension cash with ‘little known hacks’

An ethical finance firm has explained the three ways that people can boost their pension pots in retirement without costing themselves anything more.

Path Financial has advised that a children’s pension, personal pension, or someone else paying into your pension could all trigger extra tax relief payments of up to £720.

If you’re a parent, you can boost your kids’ pension pots before they reach adulthood by paying in up to £2,880 a year.

When you do, the Treasury will add up to £720 for free in tax relief.

Similarly, the firm explained that if someone has a pension and their partner, friend, relative or anybody else contributes up to £2,880 a year to it, they will be entitled to up to £720 for free in tax relief from the Treasury.

Putting up to £2,880 a year in your pension can also trigger up to £720 in tax relief payments from the Treasury., according to Path Financial.

Rowan Harding, financial planner at Path Financial, commented “Essentially, if you put £2,880 in your pension pot in one year, you will be entitled to £720 in tax relief from the Government. 

“This money can be accrued yourself, through friends or relatives contributing to your pot or for children, if their parents, guardians or those close to them contribute too.

“You can contribute using one of these ways or more, but you can’t get more than the £720 tax relief you’re entitled to.

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“These three ways could prove lucrative in your old age if you start using them early because the more money you build up, the more you’ll have to spend when you reach retirement.”

Path Financial has also advised anyone who is wondering how to make better use of their pension in a sustainable way that promotes a healthier planet, to contact them.

Rowan concluded: “Our trusted team of advisers can help you manage the myriad of pension rules and regulations to make sure you’re maximising your pot and getting the most out of your cash now so that when you retire, you have as much money to spend as possible.”