The Treasury has this week published proposals to cut the annual maximum for pension saving contributions. The current annual allowance of £255,000 will be cut to between £30,000 and £45,000, but with the proviso that the new, lower limit will have full tax relief. Read More
The pension income of a 60-year old retiring today will be £3,000 less than it was 2 years ago, says pensions specialist Aon Corporation. Good pension planning and timing are central to maximising pension income in retirement. Read More
Over 30% of UK pensioners rely solely on the state for their pension income, even though state pension income in the UK is the lowest in Europe, compared to average wage.
A third of us with pension plans do not know how they are invested, a further quarter ‘don’t care’, and half of us would need a pension pot of more than £10,000, before seeking financial advice. Survey shows a shocking level of ‘pensions indifference’ in the UK. Click headline for more details!
The Government is discussing changes in the 40% rate of tax relief on contributions to pension plans. This could include abolishing the 40% rate altogether, and could come into effect with the Budget on 22nd June. Those considering topping up their pension plans may wish to act quickly, in order to beat the Budget!
The more you earn, the more likely you are to pay attention to good pension planning, either by joining a company pension scheme, or setting up a personal pension scheme. Lower earners and the self-employed are the social groups most likely to neglect pension planning, according to new research from the Office for National Statistics (ONS).
Marks and Spencer and the Wedgwood Museum are the latest to report crippling debts from their occupational pensions schemes. Employees must increasingly consider private pension schemes, as final salary pension schemes continue to shut down.
Government pension changes free you from the obligatory purchase of a pensions annuity by age 75, and enable you to leave your remaining pension savings to your children. However, Inheritance Tax and other tax charges could devour up to 82% of your pension pot. Good pensions advice and pensions planning can minimise the impact of these and future pension changes.
Now that the new government has been confirmed as a Conservative / LibDem coalition, there are several key implications for the Basic State Pension and the whole pensions area. Click the above headline to read where the Conservatives and the LibDems already agree on pensions.
Private sector workers aged 25, saving into occupational or personal pension schemes, would have to save nearly a quarter of their salary, to achieve the same pension income as their public sector counterparts. Typical total contributions, however, are just 10%.
