Three Million Savers With ‘Final Salary’ Pensions Have 50% Chance of Losing up to a Fifth of Their Income

New pension scheme rules challengedThree million workers with final salary pensions have a 50 per cent chance of losing up to fifth of their income because their employers have made unaffordable promises, a recent report has warned. Could you be one of them?
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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

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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Millions of Savers Could Have Their Retirement Funds Decimated Due to Riskier Pension Investments

As many as 10 million savers could have their retirement funds decimated and be forced to work beyond retirement age as major pension providers are switching their money into higher risk investments.

Following the introduction of the Government’s new pension freedoms last year major UK insurers including Friends Provident, Old Mutual, and Zurich are revamping savers’ investments in a bid to improve their retirement prospects.

However, it has emerged that the new-style funds could leave millions of savers vulnerable to losing large sums just before they plan to retire.

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7 Pre-Budget Considerations for UK Pensions

 

George Osborne announces the 2016 UK Budget on 16th March.

With the Budget looming, it’s that time of year when the pensions industry starts to speculate as to what might be announced within the Budget and the impact this will have, usually resulting in challenges – but also opportunities.

Here we detail seven items which have been proposed for the upcoming Budget and consider the impact of these, including important considerations for non-UK residents.  Continue reading

Millions face ‘retirement crisis’ over pensions tax raid

 

A “Robin Hood”-style pensions revolution which is expected to be announced in George Osborne’s Budget later this month, will decimate the retirement funds of young professionals, including lawyers, doctors and accountants, hitting them eight times harder than their parents’ generation.

Meanwhile, millions of people could be forced to work until they are 75, the UK Government has hinted as details of a review into the state pension age were published.

Those under the age of about 55 could be affected by the shake-up, which will consider what the state retirement age should be from April 2028. The results will be published next May.

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