Posts Tagged: Retirement

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 »

Achieve early retirement via financial independence realistically

Posted by & filed under Retirement planning.

Early retirement

Being able to retire at an early age doesn’t just happen, it involves commitment, planning and maintaining realistic expectations. The following early retirement guide will specifically exclude extreme methods because for most of the population this simply is not realistic. Instead we will concentrate on the more prosaic issues including money management, how to get… Read more »

How retirement planning makes you wealthier

Posted by & filed under Retirement planning.

Best retirement planning feature pic

  The best financial management involves planning to ensure that your goals are achieved as efficiently as possible. Creating objectives and prioritising can allow you to amass sufficient funds to provide for a long and prosperous life in retirement. What follows is a guide of how you too can create the best opportunity for achieving… Read more »

QROPS drawbacks – The downsides of transferring a UK pension abroad

Posted by & filed under QROPS.

Although QROPS offer multiple benefits over their UK pension equivalent they do have drawbacks as well. Following the latest pension amendments these disadvantages are as follows; Only benefits UK pension holders based abroad Not designed for the accumulation of further benefits Any existing pension rights will be lost Costs can exceed alternative options Risk of… Read more »

HMRC ROPS list (Prev HMRC QROPS list) – 1st May 2015

Posted by & filed under QROPS, QROPS list.

HMRC have issued their latest ROPS list. Following a clarification in wording it is no longer officially known as the QROPS list though unofficially it appears that nothing has changed with how the lists are composed. As before, QROPS* can self certify for their inclusion whilst other, legitimately qualified pension plans, may decide against being… 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 »

Top QROPS benefits following rule changes

Posted by & filed under QROPS, QROPS pension transfers.

QROPS benefits overview which includes areas on consolidation, control, security, tax, and risk. QROPS advantages explained in detail in the article with a link through to QROPS guide downloadable pdf

QROPS (Qualifying Recognised Overseas Pension Schemes) apply HMRC rules in non-UK jurisdictions to offer multiple benefits over their UK pension counterparts. Following the latest pension amendments these advantages are as follows; Higher tax free lump sum (up to 30%) * Pay less income tax Avoid or reduce any lifetime allowance tax charge Investments can grow… Read more »

Investment options explained

Posted by & filed under Finance.

How to invest your money, whether in shares (stocks), bonds or another form, can be a daunting proposition. What follows is an in depth look at the investment process including: what is the difference between investing and saving, how do you go about investing, what options are available to invest into and what level of… 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 »

QROPS Rules and Regulations

Posted by & filed under Pension rules, QROPS.

QROPS Rules - Retirement is not allowed before 55, no inheritance tax, death tax or income withdrawal limit so you have full flexibility

QROPS are mandated to follow HMRC rules & regulations. Failure to do so may result in the pension being delisted and losing any associated tax breaks. HMRC’s QROPS list has recently been amended to clarify that a pension scheme’s inclusion does not guarantee that it is qualified. According to the rules though, a QROPS scheme is under… 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 »

Pension Withdrawal Rates

Posted by & filed under Finance.

Retirement calculators and pension withdrawal calculators are fundamentally flawed. This is not an issue as long as you are aware of their inherent weaknesses. As mentioned in our pension withdrawal guide there is no ideal amount that can be safely withdrawn upon retirement. Be too conservative and you’ve unnecessarily limited your income though, by contrast,… Read more »

Pension Withdrawal Guide

Posted by & filed under Finance.

With the imminent arrival of new pension rules providing you with complete control over your pension pot, now may be the time to consider your main options available on retirement. Only annuities give a guarantee that you will receive a certain income, possibly increasing, for the rest of your life. As such, this article’s aim is… Read more »

Retirement Options Following New UK Pension Rules

Posted by & filed under Finance.

With the imminent arrival of new pension rules providing you with complete control over your pension pot, now may be the time to consider the main options available upon retirement. All have their advantages & disadvantages. Annuities These financial products are designed to provide a guaranteed income for the rest of your life in exchange… Read more »

The terrible state of UK pension savings and advice?

Posted by & filed under Finance.

According to a recent poll by Ipsos Mori apparently 1 in 8 people eligible are considering duly withdrawing their entire pension savings as of next year. This is concerning because it either means over 200,000 people will have to rely on next to no pension provision or the advice (or lack thereof) they have received… 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 »

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