Treasury Banked £1.6bn in Tax From Pensions. Could You Be Paying Too Much Tax on Your Pension Withdrawals?

hmrc.jpgA quirk in the income tax system means HMRC is wrongly overcharging people who make use of new rules to draw cash from pensions.

Recent figures show the Treasury banked £1.6bn in tax from the first year of the pension freedoms (April 2015-16), nearly double its initial estimate of £910m. The discrepancy could be explained by a low ratio of people reclaiming overpaid tax, compared to those who have made withdrawals, experts suggest. Learn more

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FTSE 100 Pension Costs to Double Without ‘Drastic Action’, Retail Sector Pension Black Hole Widens by £6bn to Match Annual Profit

royal-dutch-shell-pension-deficitThe UK’s 100 largest listed companies face seeing their defined benefit pension costs double over the next three years unless “drastic action” is taken, according to JLT Employee Benefits.

In March this year, JLT put the combined FTSE 100 deficit at £87bn. It said only 29 companies disclosed a pension surplus in their most recent annual reports, while 59 companies disclosed pension deficits.

Royal Dutch Shell had the biggest pension liability, at £57bn, while 15 other companies had liabilities of more than £10bn.

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Watchdog Ban Spells the End of Rip-off Pension ‘Exit Penalties’

“Excessive” charges applying to savers accessing their retirement savings will be banned under new plans by City watchdogs to impose a 1% cap on fees when over 55s withdraw their money.

Following a Financial Conduct Authority (FCA) investigation which found that at least six British pension firms applied charges to customers’ pensions without telling them, as many as two million savers could have eye-watering exit fees of up to 40% of their retirement funds waived.

Are you fully aware of all the charges on your pension? Could excessive charges be hurting the performance of your pension? Have you reviewed your pension in light of recent changes in legislation?

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