Category: Pensions
Child benefit and pension contributions
Child benefit and pension contributions Child benefit can be taken for granted. But it can also be taken away. Where someone in the household earns more than £50,000, the benefit begins to be withdrawn by way of a tax charge. This could mean losing out on £2,475 for a family with three children. For individuals […] Continue reading
Playing catch up to gain pension freedom
Pension Freedom Now may be the right time to play catch up for any individuals who’ve neglected their pension savings in recent years or have relied solely on their employer’s scheme to provide for them in retirement. The new pension freedoms have provided a fresh incentive to save for retirement. Unlimited access without the need […] Continue reading
New pension death options
New pension death options Less tax and more choice! The new pension benefits rules will have individuals giving more thought on how they can provide a legacy from their remaining pension pot. The changes from 6 April will see pension pots become far more inheritable than ever before. But prompt action may be needed to ensure […] Continue reading
Pension death benefits
Pension death benefits Individuals hoping to leave a flexible legacy to family members from their pension need to check that they have everything in place to make that happen. Trying to achieve this after they have died may be impossible if stuck in a pension scheme which doesn’t offer the new freedoms, or with an […] Continue reading
The average retirement lasts nearly twenty years
The average retirement lasts nearly twenty years ? and did you know that … People turning 65 in 2014 should expect to live on average until nearly 85 A pension pot of at least £121,000 is needed to provide average expected income for 20 years People turning 65 this year can expect to average nearly […] Continue reading
Getting your pension fit for ’15
April will herald the biggest shake up for a generation on how pension income can be taken. To ensure you are in the best possible shape for the new rules it is important to give your pensions a health check too. There’s a common misconception amongst the general public that, come 6 April, they can […] Continue reading
Road test: Pension v ISA
Pension v ISA We’ve put the ‘all new’ 2015 pension and the recently modified NISA, head to head to see which will come out top in our 0 – £60k performance shoot-out and which one is the best-in-class family friendly model. Pensions and ISA compared According to HMRC 45% of savers in stocks and shares […] Continue reading
Death Benefit update
Death Benefit update The Freedom and Choice pension reforms first announced in Budget 2014 have greatly changed how pensions can be utilised in financial planning. Greater access flexibility means savers can now use their pensions for far more than a retirement income. In addition changes to the way death benefits are taxed opens yet more opportunities […] Continue reading
Reduced £10k allowance – keeping funding options open
Reduced £10k allowance Accessing April’s new pension flexibility comes at a price – that future pension funding to money purchase schemes will be capped at £10k. It may seem a small price to pay for unrestricted access to a lifetime’s pension savings. Delve a little deeper and it becomes clear that with careful planning it […] Continue reading
My Business is my Pension
My Business is my Pension – The Business Opportunity There are 1.5m small businesses in the UK, according to the Federation of Small Businesses (2014). This case study brings these together and highlights financial planning opportunities. The Issue: A Mr Sinclair (age 57) owns and operates a software development business. The business generated £300,000 of […] Continue reading
Final Salary Schemes – Is that your Final Answer?
Some holders of final salary schemes may consider transferring out of them to take advantage of the pension reforms. But would this be a good idea? Anyone considering this irreversible step could soon be required by law to take independent financial advice first. Here’s why. When you’re offered a lot of money in one go, […] Continue reading
Abolition of 55% tax charge on drawdown pension
Drawdown Pension This update provides further detail on the removal of 55% tax rate on pensions at death, following the Chancellor’s announcement on 29th September 2014. HM Treasury and HMRC plan to discuss the technical detail further with industry stakeholders prior to final legislation. Updated details have now been released and these answer many of […] Continue reading
PIPS and Carry Forward
PIPS and Carry Forward The Annual Allowance is a completely separate issue to tax relief in that the total of both employee and employer contributions, whether these are tax relievable or not, will be subject to an Annual Allowance tax charge if they exceed the Annual Allowance limit in any particular year. What is a […] Continue reading
Relaxation of the block transfer rules
Relaxation of the Block Transfer Rules The Finance Act became law on the 17th July 2014 and formally brings in some changes to pensions that we’ve known about since the Budget, such as: Increases to the trivial commutation and small pots limits, Increase in the GAD limit, and Reduction in the minimum income requirement for […] Continue reading
Business owners and pension flexibility
Business owners and pension flexibility Business owners looking to extract surplus profits from their business will be looking forward to April’s new pension income flexibility. Not only will pension funding remain the most tax efficient way to extract profits, but those funds will also become far more accessible than ever before. Allowable contributions have the […] Continue reading
Pension transfer opportunity
Pension transfer opportunity The new pension freedoms are almost here, but some individuals may be locked in to outdated contracts for fear of missing out on pre A-Day tax free cash entitlements. And that means their retirement income options may be limited. Help may be at hand for some individuals which will allow them to […] Continue reading
The Hook, The Hustle, The Truth – Pension Liberation
Pension Liberation The Hook, The Hustle, The Truth sounds more like a Hollywood heist blockbuster than a campaign from the government’s pensions advice body. But such is the level of concern that fraudsters and scam artists will target pensioners from April, when accessing cash will be much easier, that the industry is making its warnings […] Continue reading
10 Good Reasons to Pay into a Pension before April 2015
10 Good Reasons to Pay into a Pension before April 2015 There are less than three months to go before the new pension freedom becomes reality. With the legislation now in place, the run up to April is time to start planning in earnest to ensure you make the most of your pension savings. To […] Continue reading