24 August 2023
Consolidating your pensionLisa Webster, Technical Resources Consultant at AJ Bell, discusses the benefits of consolidating your pension, and what you need to consider when transferring a pension.
Pensions
6 April 2023
What do the new pension rules mean for me? Untitled DocumentA new tax year brings a fresh set of allowances, but at his recent Budget, the Chancellor also increased what was on offer for pension savers in this new tax year, too.
You can read about the changes and how they impact your own finances below.
What has changed? Annual pension allowancesThe changes that will affect most people...
13 March 2023
How much can I pay into my SIPP?It should be an easy question for investors to answer. But because of pension rules, working out how much you can pay into your SIPP takes a bit of homework.
In this article, I’ll explain how these pension rules work, and what to think about when calculating how much you can pay in.
This article gives you information and tips, but isn’t tax...
2 March 2023
Three top tax tips for SIPPs Untitled DocumentSIPPs can be a great way to boost your retirement savings. Not only do investments in a SIPP grow free of tax, but tax relief from the government generously top ups the money you pay in.
As SIPP tax relief is so valuable, I’ve drawn up three top tips to make the most of it. That includes how to shield yourself from a potential...
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...
