4 January 2023
Change to capital gains tax rules – what you need to knowOver the next two years, the tax-free allowance for capital gains is being slashed by over 75%. In this article I discuss the rules on capital gains tax and five ways you can reduce your potential tax bill.
Whilst this article contains information and tips – it is not tax advice or a personal recommendation. If you need help with tax or your...
26 October 2022
Rishi Sunak’s in-tray: 5 taxing questions for the new prime ministerAs the new prime minister Rishi Sunak enters No. 10, he faces difficult decisions over a range of tax, pensions and economic issues which remain unanswered after months of debate and discussion through the leadership contest and the fallout from last month’s mini-Budget.
AJ Bell experts consider 5 key questions awaiting the new prime minister:
Inc...
7 October 2022
FCA warns over 'misdirection' scams risk as a quarter of savers eye early pension access during cost of living crisisAs inflation tightens its grip on Brits’ finances and millions of households face up to the prospect of spiralling mortgage bills as interest rates rocket, it is inevitable scammers will increase their activity as they look to prey on rising vulnerability.
Recently published data shows the number of savers accessing their retirement pots for the...
11 August 2022
4 in 10 retirees alter pension withdrawals as inflation surges and recession loomsFour-in-ten retirees drawing an income from their private pension are changing the amount of money they take from their pot in response to the double whammy of struggling markets and the rising cost of living.
The data comes from a survey carried out by investment platform AJ Bell Youinvest with over 1,000 of its customers that draw an income from...
14 July 2022
Cost of living payments start with pensioners urged to check their eligibility for more supportMore than 8 million households will get the first of the latest tranche of cost of living support from 14 July, with £326 hitting people’s bank accounts between the 14 and 30 July. Low income households who are on certain benefits will be eligible for the payments, although they need to have been entitled to them before 25 May this year.
While the...
22 June 2022
New report sheds light on the impact of state pension age increasesFor those on very low incomes, increasing the state pension age by just a year can be enough to push people serious financial turmoil new research has revealed*.
And while there are ways to replace at least part of this lost income – either via in-work benefits, from your private pension pot or by working longer – the evidence suggests lots of...
14 April 2022
State pension increases by 3.1% …but soaring inflation means retirees will still feel the pinchWhen is a pay rise not really a pay rise? When the cost of the things you buy are increasing by more than the extra cash you’re receiving.
Sadly, that is exactly the position millions of retirees find themselves in as the state pension rises by 3.1% - exactly half the 6.2% CPI inflation figure recorded in February this year.
The reason is that...
23 March 2022
Chancellor does little to ease cost of living crisisThe big rabbit out of Rishi Sunak’s hat was announcing a cut to income tax rates from 2024, and while that will grab the headlines it’s precisely zero help to families struggling with the cost-of-living crisis now – or indeed for the next two years.
The announcement today, which clearly could have waited until the full Budget later this year...
21 March 2022
Tax year end retirement tips and traps savers need to know“The end of the tax year is a natural time for people to check they are making use of their annual tax allowances before they expire on 5 April and they shouldn’t forget their pension when doing this,” says Tom Selby, Head of Retirement Policy at AJ Bell.
With the cost of living on the rise, saving for the long-term might feel like a luxury people...
18 March 2022
The rise of the job hoppers: Millennials could each have five pensions on average as employer switches become more commonWhile Baby Boomers born post-World War II might have had only one or two employers in their career – potentially offering generous guaranteed defined benefit (DB) pensions – the younger workforce is increasingly transient.
In fact, the average Millennial – who might be less than halfway through their career - is likely to have changed employer...
22 December 2021
New year, new finances: Five money resolutions for 2022January is a month where most people stay in, shun socialising and have a bit of spare time on their hands, so it’s the ideal time to tackle some of that boring life admin that you’ve been putting off. The bonus is that you could make a decent amount of money from tackling some of these tasks, which is often much-needed at the start of the year.
So...
18 November 2021
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27 August 2021
Over 50s leaving work early could hit retirement plans…and cost the UK economy £88 billionThe early exit of people aged between 50 and state pension age from the workforce has a significant impact on both individual retirement plans and the wider economy. In fact, it could be costing the UK as a whole as much as £88 billion, according to the latest ONS figures.
While in some cases stopping work early will be a voluntary decision – for...
24 June 2021
How mooted pension tax relief reform plans could hit saversRecent press reports suggest the Treasury is eyeing cuts to pension tax incentives to help pay the cost of COVID. Reforms said to be under consideration include introducing a flat rate of pension tax relief, cutting the lifetime allowance or taxing employer contributions.
Beyond the political fire and brimstone a pensions tax raid would cause...
28 May 2021
Inflation is back…but what could it mean for people’s retirement incomes?It’s been a long time since the spectre of inflation has loomed quite as large as it does today.
CPI has doubled in the space of a month and, with the end of lockdown hopefully a month away, there is the real prospect of a ‘Roaring 20s’ spending frenzy in the UK, fuelled in part by people who have managed to save a pile of cash after spending 14...
11 May 2021
Queen’s Speech: What will the Government’s financial services priorities be in 2021 and beyond?The vast health and economic challenges presented by the coronavirus pandemic will inevitably be at the heart of the Queen’s Speech next week. However, there are also significant issues affecting savers which demand attention from the Government in the coming year.
Details on vital interventions set out in the Pension Schemes Act need to be worked...
9 April 2021
Will 'peak pension freedoms season' return after pandemic-induced withdrawals slump in 2020Until 2020, the beginning of a new tax year has traditionally been peak pension withdrawal season, with UK savers taking advantage of a fresh set of tax allowances to access larger amounts from their retirement pots.
In fact, before the pandemic hit withdrawals in the first three months of the financial year had been between 10% and 33% higher...
31 March 2021
How scrapping higher-rate pensions tax relief would hit middle Britain, including NHS workersGiven the black hole the coronavirus pandemic has blown in the Treasury’s finances, it is no surprise pension tax relief is now firmly in the Chancellor’s sights. Pension tax relief across defined benefit and defined contribution pension schemes costs the Exchequer about £40 billion a year. In this context, you can see why scrapping higher-rate...
3 March 2021
Budget 2021 - Furlough extension, stealth taxes and a new NS&I Green BondThe chancellor has continually promised to do “whatever it takes” to support businesses and workers through lockdown so it’s come as no surprise that both the furlough and SEIS schemes have been extended, at least for a little while.
There’s a clear change in focus from getting through to getting out, with a new £5bn scheme for small companies...
2 March 2021
What does the March Budget hold in store?The tussle between economic stagnation and combustion leaves the Chancellor performing a high wire tight rope act in next week’s Budget. On one side lies spiralling government debt and potentially rampant inflation, on the other side, a faltering economy, and more job losses.
The Budget is likely to remain focused more on providing support for the...
20 July 2020
How to avoid a 90% annual allowance cut if you need to access your pensionEven before Covid-19 hit, the money purchase annual allowance (MPAA) felt like an unfair punishment for savers whose only crime was accessing taxable income from their pension pot.
During this crisis many more over 55s will be facing salary cuts or joblessness, while others will need to use their savings to help loved ones struggling to make ends...
8 July 2020
Stamp duty sugar rush for the housing marketToday’s statement was always likely to focus on ‘good’ news items designed to stir the UK economy from its economic slumber. We got that in the form of a big VAT cut for the hospitality sector, new job creation programmes and a headline-grabbing reduction in stamp duty.
However, the Chancellor was clear stabilising the public finances and paying...
4 June 2020
UK workers prepared to pay extra 4% income tax to fund £300bn pandemic billBattling back from Covid-19 is going to be a long hard journey. As the UK Government eases lockdown restrictions and state support for the economy is slowly scaled back, debate will inevitably pivot towards how the near £300billion black hole in public finances should be filled.
While the Coalition Government opted for public spending cuts to...
12 May 2020
1.7 million younger savers vulnerable to ‘early access’ pension scams during Coronavirus crisisThe UK National Cyber Security Centre have warned Coronavirus is the “top lure” currently being used by online criminals. One in 8 (16%) of people under 55 with a pension would consider an offer to access their fund early to help get them through the Covid-19 crisis. Younger savers are more at risk, with one in every five (21%) or 1.7 million* 18...
4 May 2020
Five things you should consider when accessing your pension during Covid-19Over 1 million people have enrolled into the Government’s furlough scheme, while millions more are facing either unemployment, pay cuts or severe job insecurity. 1 in 10 (11%) of over 55s with a pension have either already accessed or plan to access their retirement pot earlier than anticipated as a result of Covid-19*.
Tom Selby, Senior Analyst...
16 April 2020
Pension vs Lifetime ISA: the tale of the tape for retirement investorsThe Lifetime ISA (LISA), which is the first dual-purpose product aimed at both first-time buyers and retirement savers, has just celebrated its third anniversary.
The LISA has split opinion across the industry, with some arguing it is a useful alternative to traditional pensions and others warning it creates the wrong incentives and should be...
15 April 2020
Peak pension freedoms season: Five things to consider when flexibly accessing your retirement potThe start of the new tax year is peak pension withdrawal season for UK savers. In each year since the pension freedoms were launched in April 2015, the first three months of the tax year (from 6 April to 6 July) has seen significantly higher withdrawal levels than any of the subsequent quarters.
In most cases this will simply reflect people making...
25 March 2020
The quirks that mean you can pay up to 200,000% in tax – and how to avoid themThe loss of some benefits and allowances can potentially result in effective tax rates way above the highest income tax band in the UK:
Loss of benefit / allowance Maximum effective tax rate Child benefit 57.89% Personal allowance 60% Personal savings allowance 22500% Married couples allowance 25000% Tax free child care 200000%The complicated and...
24 March 2020
Beware rise in pension scams as Coronavirus fraud reports surge 400%While the country hunkers down in the hope of slowing the spread of Coronavirus, the economic fallout will inevitably lead to an increase in the number of vulnerable or potentially vulnerable people in the UK. In such an environment unscrupulous scammers will already be plotting ways to take advantage during what for many will be a time of serious...
6 March 2020
The personal finance announcements to look out for in next week’s BudgetNew Chancellor, Rishi Sunak will make his first Budget announcement next Wednesday, 11 March. Laura Suter, personal finance analyst at AJ Bell and Tom Selby, senior analyst at AJ Bell, outline what people should be looking out for in relation to their personal finances.
Pensions Urgent measures to address the NHS pension tax taper problemWhile...
2 March 2020
Four reasons for the pensions gap – and how to tackle themThe nation isn’t saving enough for their retirement, but women end up with pension pots lower than men – which can have a dramatic difference to their lifestyle in retirement.
Women face a triple whammy when it comes to their pensions: they are not saving enough; they are not investing that money and so could be missing out on higher returns over...
26 February 2020
Self-employed pensions: Making retirement work for youThe UK is in the midst of an entrepreneurial boom. The level of self-employment surged from 3.8 million in 2008 to almost 5 million today, according to the Office for National Statistics.
While this trend is among the defining characteristics of the post-financial crisis economic recovery, it also presents a retirement challenge. Because, as the...
20 February 2020
Key changes for 2020/21 tax yearEvery new tax year brings in changes to the rules and allowances for how much people can invest and where. And the 2020/21 tax year is no different. Below is a list of the major changes we can expect to see next tax year – covering pensions and savings, property, and employment status. Not all the detail is pinned down yet; we are still waiting for...
18 February 2020
Is the Government about to scrap higher-rate pension tax relief?You may have read reports recently suggesting the Government is considering reforms to pension tax relief at the Budget on 11th March. We're here to separate pension fact from fiction.
How does pension tax relief work at the moment?
When you pay money into a pension it is free from income tax, with total annual contributions (including tax...
9 December 2019
Election watch: How the major parties shape up for your financesThis election has seen an unprecedented focus on policies aimed squarely at pensioners, with all parties keen to bolster support ahead of polling day on 12th December.
Pensions are arguably the big story of the Labour campaign, with the party committing £58 billion in compensation to the WASPI women and freezing proposed increases in the state...
28 November 2019
How the Conservative manifesto could affect personal financesThe Conservative election manifesto might not be as radical as Labour’s but there are still plenty of proposals that would have an impact on people’s finances and long term savings.
AJ Bell’s analysts consider the key pensions and personal finance pledges put forward by the party.
National Insurance and income tax U-turnNational Insurance rates...
28 November 2019
Green Party manifesto promises radical shake-up for people’s financesThe Green Party has published its election manifesto, including various proposals that would affect savers and retirees.
Based on recent polling, it is possible the next Government will be a coalition comprising a number of the minor parties. The views of these parties are therefore probably more important than ever before.
AJ Bell’s analysts...
28 November 2019
What would the Liberal Democrat manifesto mean for your finances?The Liberal Democrats published their manifesto as the general election battle picked up pace.
While the Conservative and Labour documents will understandably draw the most attention, the minor parties could yet have a crucial say in the future direction of the country.
AJ Bell’s analysts consider the key pensions and personal finance pledges put...
28 November 2019
The potential impact of the Labour manifesto on people's finances and long term savingsLabour has published its election manifesto with plenty of proposals that could have a big impact on people’s finances and long term savings.
AJ Bell’s analysts consider the key pensions and personal finance pledges put forward by the party.
Freeze in state pension age increases beyond 66Make no bones about it – this is a gargantuan promise from...
19 November 2019
Government proposes emergency NHS pension tax fix but does it risk creating more problems?The dog’s breakfast that is the annual allowance tax taper is getting more and more ridiculous by the day. It is ludicrous that the UK’s mind-bogglingly complex pension tax system is now causing significant capacity issues for the NHS – effectively putting people’s lives at risk as senior consultants refuse shifts to avoid huge tax bills.
In...
11 November 2019
Average pension scam victims lose 22 years of savings in just 24 hoursHubris and trusting the ‘advice’ of strangers are proving to be the undoing of scam victims. This is a recipe for disaster as fraudsters prey on the good nature of hard-working savers.
The results of scams are often heartbreaking, with thousands of people losing pensions they have worked their entire lives to diligently build up. In many cases...
30 October 2019
How the general election could affect people’s financesWith the UK heading towards a general election on 12 December, Laura Suter, personal finance analyst at AJ Bell and Tom Selby, senior analyst at AJ Bell, look at how the outcome could affect people’s personal finances in some key areas.
Income tax
Boris Johnson pledged a number of changes to personal finances in his campaign to be elected prime...
15 October 2019
Five pension problems the Treasury needs to focus onThe Treasury has confirmed the 2019 Budget setting out this Government’s fiscal agenda is scheduled for 6 November.
While there is no guarantee this administration will actually survive that long, there are various issues demanding Chancellor Sajid Javid’s attention.
1. Scrap the pension tax taperThe strains being placed on the NHS as a result of...
9 October 2019
How Monday’s Queen’s Speech could affect personal financesAssuming we finally get a Queen’s Speech on Monday, any impact on our personal finances is likely to come via a Pensions Bill setting out the Government’s legislative priorities for savers and those already in retirement.
What are some of the key areas a Pensions Bill could focus on?
The Government wants to introduce the principles of Open...
24 July 2019
Boris Johnson to become UK Prime Minister: what it could mean for people's financesBoris Johnson will become Prime Minister of the United Kingdom tomorrow after winning the Conservative leadership contest.
While the former Mayor of London faces one pretty obvious challenge in the short-term, he has also made a number of campaign pledges aimed, unsurprisingly, at core Tory voters.
So how could these proposals affect people’s...
4 July 2019
Don’t let a scammer enjoy your retirementScammers are targeting pension pots of all sizes. Make sure you know how to spot the warning signs and how to keep your pension safe.
Pension scams can be hard to spot. Scammers can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing.
How pension scams...
28 June 2019
What could the new Prime Minister have in store for our personal finances?In less than a month either Boris Johnson or Jeremy Hunt will be chosen by 160,000 Conservative Party members as Prime Minister of the United Kingdom.
Both candidates have made pledges as part of their respective leadership campaigns which voters will expect them to fulfil. They will also be tied to the Conservative manifesto Theresa May was...
11 April 2019
Which crucial pension policies face delay after Theresa May agrees Brexit ‘flextension’?Fans of interminably dull twitter debates will be relieved to hear the process of the UK leaving the European Union could drag on until Halloween (31 October).
However, the ‘flextension’ agreed between the European Union and UK Prime Minister Theresa May could be a nightmare for retirement policy as it will push key reforms down the legislative...
19 June 2018
Will pensions be targeted to fill the £20 billion NHS funding gap?With the respected Institute for Fiscal Studies (IFS) warning the so-called ‘Brexit dividend’ doesn’t actually exist, the Government is facing questions over how it will find the extra £20 billion a year Prime Minister Theresa May has promised for the National Health Service.
The money is expected to come from a combination of increased Government...
20 September 2017
Finance Bill 2017: Key takeaways for savers and investorsWith the Brexit negotiations taking centre stage and Theresa May’s decision to hold a snap general election throwing the usual business of Government into disarray, it was little surprise to see few fireworks following the unveiling of the Finance Bill 2017 earlier this month.
That said there were a couple of key changes introduced which could...
