Budget 2016: Former pensions minister Steve Webb warns Osborne will drop a “tax bombshell” with pensions overhaul February 21, 2016 Former pensions minister Steve Webb has warned that chancellor George Osborne is getting ready to drop a £4bn “extra tax bombshell” in next month’s Budget by getting rid of the so-called tax-free lump sum. Webb, who was pensions minister in the coalition and is now director of policy at Royal London, said today that existing [...]
UK pensions: Waspi campaign gets a boost as new survey finds that more than half of those scheduled to retire this year are already working past state pension age or are considering doing so February 19, 2016 Many of those due to retire this year are technically already pensioners, and yet more fear they cannot afford to give up work, a new report has found. The study released today by Prudential discovered that 51 per cent of those who are currently planning to retire this year have already reached state pension age [...]
UK pensions: Actuaries slam idea of triple lock, saying protecting pension provision for future generations depends more on better financial education February 18, 2016 Actuaries have today cast doubt on the government's key mechanism for calculating state pension. Responding to the Work and Pensions Select Committee’s inquiry on intergenerational fairness, the Institute and Faculty of Actuaries (IFoA) has said that triple lock is not only unnecessary but would also place an unfair burden on workers in the future. Under triple lock, basic state [...]
Pension changes: Government plans to let pensioners sell their annuities on a new secondary market have been universally criticised February 18, 2016 Pensioners will be able to sell on their annuities from next year, swapping regular income payments for a lump sum. It’s part of government plans to give greater freedom to the 5m pensioners who are already living with annuities. Some may be regretting their choice, and the idea of a fat lump sum instead of [...]
Osborne’s pensions tax relief shake-up explained: What could happen and what should you do about it? February 18, 2016 Former pensions minister Steve Webb made headlines earlier in the month by claiming that abolishing Britain’s current system of pension tax relief could be George Osborne’s “’Gordon Brown’ moment” (referring to the latter’s notorious tax raid on occupational pensions in 1997). Now a director at Royal London, Webb pulled few punches in outlining what he [...]
Osborne’s latest pensions raid: Flat rate tax relief would be both irrational and unfair February 18, 2016 Private pensions have always been a soft target for cash-hungry chancellors. Nigel Lawson made pension funds restrict the size of their surpluses under threat of losing their tax-exempt status. Gordon Brown abolished Advance Corporation Tax in the great pension raid of 1997. And George Osborne has done his bit by slashing the annual and lifetime [...]
UK pensions: Only three per cent of employers have helped staff understand changes to the lifetime and annual allowance for pension contributions, which are due to come in this April February 16, 2016 Some big changes are on the horizon for pensions, but just a handful of businesses are taking action to help their employees understand them, according to a new survey. Research released today by Close Brothers Asset Management has discovered that only three per cent of employers are offering specific support to staff members who are likely [...]
Pension changes mean it’s time to talk to your boss: Drop in the annual allowance will catch City workers out February 15, 2016 TIME is running out for higher earners to re-negotiate their pension packages before planned new changes to the tax system kick in this April. The amount people can save tax-free in a pension each year will drop, with special rules coming in for anyone earning over £150,000. Experts are advising city workers to check their [...]
Relax, you’ll be a millionaire by 2050 – and other predictions for the future February 15, 2016 Sit back, take it easy and stop worrying about money – you'll be a millionaire by 2050. Unfortunately, so will everyone else, making the millionaire milestone a little less special, but earnings will still grow at an annual rate of two per cent, doubling in real terms. That's just one of the predictions for mid-century life in [...]
UK pensions: When can you afford to retire? Never or at least not until your 70s if you want to be comfortable, according to a report out today February 15, 2016 Today's workers will need to keep plugging away well into their golden years if they want to afford the same standard of retirement as their parents, a report out today has found. The study by pensions company Royal London discovered that people on average earnings would need to continue to work until they are 77 [...]