Pensions

24 July 2019

Boris Johnson to become UK Prime Minister: what it could mean for people's finances

Boris 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 retirement

Scammers 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 investors

With 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...

31 August 2017

Will pension scams clampdown really protect savers and investors?

“Hello! I’m just calling about the accident you were involved in last week…”

Most of you have probably received a cold-call of this nature at some point in the past few weeks, with the firm on the other end of the line looking to make a claim on your behalf.

Pre-recorded messages saying you are in line for a big Payment Protection Insurance (PPI)...

24 August 2017

Crunching the numbers: How pensions and property square up for investors

Two years ago while skiing in France I got into an embarrassingly heated debate with three Norfolk farmers about the merits of property investing versus saving in a pension. The trio were bricks and mortar evangelists and refused to even countenance the possibility investing their hard-earned cash in stocks and bonds – or even worse, paying a fund...

10 August 2017

Natural yield versus total return

Which is the best way to maximise your retirement income?

The pension freedoms have cast renewed focus on retirement income strategies and how people make the best of their hard-earned pension pot. Senior analyst Tom Selby looks at the strengths and weaknesses of two key approaches designed to ensure savers get what they want from their drawdown...

20 December 2016

How to spot a scam

Savers now have greater flexibility over how they use their hard-earned pension pot than ever before. Once you reach age 55, you can spend or invest your retirement savings as you want - although remember withdrawals will be taxed in the same way as income.

These freedoms aren’t just attractive for savers, however – scammers are also attacking the...

26 October 2016

Pensions, death and taxes

“In this world nothing can be said to be certain, except death and taxes.” So said Benjamin Franklin, the sixth President of the United States, in a letter written following the establishment of the Constitution.

In pensions, death used to be followed by a huge 55% tax hit on any money you left behind to your loved ones. However, rules introduced...

20 October 2016

Tax relief: The difference between pensions and ISAs

Stand aside pensions – ISAs are the new kid in town. That seemed to be the conclusion of a report published by the Office for Budget Responsibility (OBR), an independent body set up to hold the Treasury to account, last week.

And the evidence since 2010 certainly seems to back that assertion. George Osborne, the former Chancellor of the Exchequer...

6 October 2016

Pensions vs property: which wins the retirement income war?

On the retirement income battlefield, one war has waged more fiercely than any other – pensions versus property. Property evangelists insist you’d be better off sticking your savings in bricks and mortar, while pensions nerds steadfastly back the tax-advantaged retirement vehicle.

But who is right? And what should you consider when deciding whether...

6 October 2016

Pensions – the impact of starting early

You’ll often hear financial experts extol the virtues of saving early and often for your retirement. But what you might not be aware of is the magic of compound growth, described by Albert Einstein no less as the ‘eighth wonder of the world’.

‘He who understands it, earns it,’ said the father of the theory of relativity. ‘He who doesn’t…pays it.’

B...

28 September 2016

Could pension tax relief cuts spur VCT growth? Tax relief on the block?

The Sword of Damocles once again hangs over pension tax relief. Investors are by now well used to the usual pre-Budget/Autumn Statement newspaper speculation over the future of the UK’s current system, whereby contributions and investment growth are tax-free and withdrawals are taxed at the saver’s marginal rate.

Former...

31 August 2016

Shifting pensions landscape

When former Chancellor George Osborne announced plans to allow savers aged 55 and over unfettered access to their pension pot from April 2015, nobody was quite sure how people would react. Could they be tempted to splurge their retirement pot on flash cars? Or would they pause for thought and consider the implications a spending spree would have on...

18 August 2016

The pension transfer advice conundrum

The pension freedoms have reshaped the UK’s retirement landscape and opened up a plethora of retirement planning opportunities and risks. The reforms, introduced in April 2015, have proved hugely popular, with savers accessing billions of pounds flexibly and annuity sales plummeting.

However, while the majority of those over the age of 55 in...

10 August 2016

Is now the worst time in history to retire?

Bank of England governor Mark Carney last week unveiled a series of “big bazooka” monetary policy stimuli designed to breathe life into the ailing UK economy.

In simple terms, the package of measures – a 25 basis point rate cut, injection of quantitative easing and access to cheap funding for banks – are designed to get people spending rather than...

28 June 2016

What does Brexit mean for your finances?

While the dust is unlikely to settle for months following Friday’s shock EU referendum result, you may be anxious about what all this uncertainty means for your retirement plans.

In these turbulent times, it is important not to make panic decisions based on speculation or rumour. The political and economic landscape may be febrile, but any attempt...

15 June 2016

Brexit: separating pension fact from fiction

The stakes could not be higher ahead of the EU referendum on 23rd June. It’s therefore unsurprising to see the claims and counter claims of both the Leave and Remain camps ramping up as the vote draws ever closer.

But how much can you actually believe from these fighting cabals of desperate politicians and campaigners? Let’s have a look at some of...

25 May 2016

What you need to know before trading in your annuity

George Osborne’s radical pension freedoms are set to be extended to millions of people who have already bought an annuity from April next year.

However, a combination of strict regulatory controls, high costs and uncertainty over who will actually buy annuities means the future of the market is anything but clear.

So what do you need to consider...

9 July 2015

What the Summer Budget means for your savings and investments

Chancellor of the Exchequer George Osborne’s Summer Budget is a boon for political commentators, economists and historians alike, as all will have plenty to debate, given his emphasis on hard work, low tax, the Northern Powerhouse and One Nation Toryism. But more practically, there is a lot for savers and investors to digest too after the release...