Did you know there is a limit to how much you can save into a pension? It is called the lifetime allowance, and in 2020-21 it is set at £1,073,100. This may sound like an unattainable goal for many readers (especially those on lower salaries starting in their careers), yet it is not unheard of for individuals to inadvertently exceed this limit – without even realising. Should this happen…
Early in February, headlines reacted with shock as news broke that banks had been asked to prepare for negative interest rates. The Bank of England (BoE) have given six months to get their IT systems ready, although it was quick to reassure people that negative interest rates will certainly be introduced. The possibility, however, does leave important questions…
Two key announcements on pensions have been made in the last 4 months. First of all, from October 2020 the UK state pension age was raised from 65 to 66. This was announced in the Pensions Act 2014, of course, so does not come as a surprise – yet it will have significant implications for pension planning going forwards. The state pension age (SPA) will later rise to 68 in 2028…
COVID-19 has overshadowed almost all aspects of life in 2020 – including retirement planning. How might the pandemic affect your plans (and ability) to retire, especially for those looking to start accessing their pension savings within the next 12 years? Undeniably, events this year have presented additional challenges to these people. These will need to be carefully…
You may have already spent years putting money aside into a pension. Yet how, exactly, do you eventually use it to generate an income in retirement? It isn’t the same as living off cash savings since pension pots are typically invested in assets such as stocks and bonds, which carry higher investment risk but also more growth potential. In 2020-21, moreover, you cannot start taking money out of your pension…
It is estimated that as many as 15m people (i.e. 1 in every 3 retirees) in the UK have no pension savings at all. Those over the age of 50 are especially at risk of pension poverty, since there is less time to build up a viable strong retirement fund (although it is certainly not too late). Many people seem to believe that the government will look after them when they stop working, much like the National Health Service…
The UK pension system can easily leave people confused. Not only does it deal with finances which seem to be in the far future, but the tax regime and “compounding dynamic” which take place on pension investments can also be quite complicated. There are also a range of pension allowances available which are intended to incentivise people to save towards their…
The question of what to do with your 25% tax-free pension lump sum has come into sharper focus in 2020. In stable times, this is a big decision given the vast sums involved and the impact upon your nest egg. Yet since the COVID-19 pandemic and subsequent volatility in the stocks markets, many pensions across the UK (which are typically invested in them) have taken…
Divorce is not unheard of in later life and, in fact, the figures suggest that it is growing more common. According to the Office for National Statistics (ONS), 7,468 marriages comprising over-65s ended in 2004, with the figure rising to 10,937 in 2014. Whilst money can sometimes be far from people’s minds during the divorce process, it’s crucial to not neglect your financial interests – especially with regards to your pension.
This content is for information and inspiration purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice please consult us here at Elmfield Financial Planning in Padiham, Burnley, Lancashire. Turning 40 can be a time of great change for many people. The kids are older and perhaps you have been in a…
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