Posts Categorized: UK Pensions

How to make pension drawdown work

Posted by & filed under Retirement planning, UK Pensions.

Pension drawdown article

Following UK pension rule changes implemented in April 2015 pension drawdown has become a lot more prevalent. It is expected that these amendments will affect how people withdraw income from their pension henceforth in the British market. Certain overseas QROPS markets are already in the process of altering their pension regulations to benefit from the… Read more »

Pension exodus following April rule changes?

Posted by & filed under Retirement planning, UK Pensions.

Pension April rule changes results

  Pension rule changes enacted in April were a huge change for the industry which, until then, focused on helping individuals accumulate wealth whilst they worked and then offered them an income for life, known as an annuity, upon retirement. Admittedly some individuals invested and withdrew income instead, though even in these circumstances there were… Read more »

QROPS vs SIPPs following pension rule changes

Posted by & filed under QROPS, UK Pensions.

QROPS versus SIPPs

Choosing a QROPS or SIPPs may at first appear a difficult decision especially following amended UK pension rules which came into force on the 6th of April 2015. This is not helped when there is a lot of conflicting and occasionally inaccurate information available. A key point to bear in mind is that any generalised… Read more »

What is an annuity and should you have one?

Posted by & filed under Annuity, UK Pensions.

Pensions, what is an annuity & how do annuities work

An annuity is a common form of pension investment for retirees. Below we will answer the following questions; What is an annuity? How do annuities work? What are annuity rates? What are annuities benefits and drawbacks? What are the common types of annuities? Alternative options MoreWhat is an annuity Annuities provide the holder a form… Read more »

UK pension tax relief

Posted by & filed under Pension rules, UK Pensions.

Pensions: Maximum pension contributions. Income < £3,600pa then £3,600 gross or £2,880 net; income < annual allowance then annual allowance gross (entitled to 20% tax rebate on personal allowance contributions; otherwise annual allowance gross. Tax relief at highest marginal rate: 45%, 40% then 20%. Min tax relief is 20% up to maximum limit

Pensions are the most tax efficient savings schemes due to their ability to avoid or delay the payment of tax. It is still important to weigh up the benefits against their drawbacks to ensure that they are the best option for you. There are different methods of claiming tax relief dependent upon your circumstances including; Occupational pension… Read more »

Pensions: Lifetime Allowance (LTA)

Posted by & filed under Finance, UK Pensions.

The UK Lifetime Allowance (LTA) is a limit imposed by HMRC on the total accumulated pension anyone is entitled to before tax relief is reclaimed. There are different factors that may apply to you; Brief history Lifetime allowance limit How is it measured Benefit crystallisation event Protection Primary protection Enhanced protection Fixed protection Individual protection… Read more »

Pensions: Annual allowance tax relief

Posted by & filed under Finance, UK Pensions.

The UK annual allowance is a limit imposed by HMRC on the amount of tax relief available for pension contributions in any one tax year which, for UK tax purposes runs from the 6th of April to the 5th of April the following year. This applies to both defined contribution (money purchase) and defined benefit… Read more »

UK pension rules and regulations

Posted by & filed under Pension rules, UK Pensions.

HMRC rules and regulations governing pensions in the UK fall into three main categories which can be further subdivided. Current pension rules therefore cover the following areas; Retirement age State retirement age Minimum retirement age Tax rules Income tax relief Pension withdrawals Death tax rates Additional rules Pension transfers Free impartial advice Unauthorised payments Retirement… Read more »

Pensions explained

Posted by & filed under Pension rules, UK Pensions.

What follows is a full explanation of pensions including; Definition of what a pension is United Kingdom options (defined benefit & defined contribution) Overseas options (including QROPS) Why pension transfers are used Pension benefits Pension drawbacks HMRC & the pension regulators’ involvement Rules and regulations Rule changes Pension reform Pensions and investments What is a pension A… Read more »

Defined contribution (money purchase) pension schemes

Posted by & filed under UK Pensions.

These are pensions whose performance is largely dependent on the underlying investments though an employer operated scheme may offer it’s employees certain guarantees in respect to the returns received. Unlike defined benefit schemes this does not extend to guaranteeing their annual retirement income. They are available through both company sourced and privately purchased plans.  … Read more »

Defined benefit (final salary) pension schemes

Posted by & filed under UK Pensions.

Defined benefit pensions, more commonly known as final salary schemes are a form of retirement plan which are/were solely offered by certain employers. They are most prevalent in the public sector, whilst the majority of private sector employees have either never had the opportunity to participate or have witnessed the closing of their scheme. Private… Read more »

Retirement Planning

Posted by & filed under UK Pensions.

Why retirement planning is important Previously, defined benefit pensions provided employees with a known income upon retirement. Unfortunately, they are now rarely available resulting in most people owning defined contribution pensions instead. The latter provide no such guarantees about the level of pension income you can expect. It is therefore your responsibility to ensure that your savings… Read more »

Tips to Avoid Poor Financial Advice

Posted by & filed under Finance, UK Pensions.

Wealth, it has a huge impact over you and your family’s lifestyle. Finding someone to trust in these matters can be difficult. Unfortunately there are times when unscrupulous or misguided advice is provided. Using individuals who are regulated and qualified does not, in itself, guarantee protection against bad advice. What follows are key areas that… Read more »

UK Death Tax Changes 2014

Posted by & filed under Pension rules, UK Pensions.

UK pension rules are expected to undergo further changes following George Osborne’s recent announcement at the Conservative conference. These changes are likely to to be confirmed in the autumn statement (3rd December 2014) and subsequently enacted from April 2015. This has now come to pass. Following major pension changes announced in the 2014 UK budget… Read more »

New UK Pension Rules from April 2015

Posted by & filed under Pension rules, UK Pensions.

Following on from the UK Government’s consultation results* the new pension framework can now be laid out detailing how this specifically affects final salary (defined benefit) pension schemes and money purchase (defined contribution) schemes. The pension reforms will replace the interim measures announced in the UK budget of March 2014 and will come into effect from the… Read more »

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