Is it possible to get a 114% guarenteed return from cash invested into a pension?

Yes is the quick answer........if you are a higher rate tax payer and approaching retirement. Here is how:

£8000 (net) invested into a pension plan, attracts an additional £2,000 tax relief (Total fund now £10,000)

As a higher rate tax payer, a further £2,000 can be reclaimed through a tax rebate (actual outlay now £6,000 (£8,000 - £2,000)

On retirement, 25% (£2,500) can be taken from the fund as tax free cash (outlay now £3,500 (£6,000 - £2,500)

Fund remaining to give income £7,500 from an investment of £3,500 - a return of 114% 

To a lesser degree, this also works for a basic rate tax payer, where a total investement of £5,500 would be required. Nevertheless, a return of 36%

For more information on this and other retirement planning advice speak with our financial advisor Jeremy Squibb