Category: pensions

So what is the pensions Lifetime Allowance (LTA) for UK pensions. It was the maximum amount of pension savings you could build up without paying an extra tax charge. But it was fully abolished on April 6th 2024 by Jeremy Hunt (the chancellor as part of his Spring Statement). It […]

A common question I get asked when speaking to clients. Is how can I limit or reduce the amount of income tax payable when accessing your pension within the UK. Your pension is probably your biggest asset after your home or residence, and we seem to spend a lifetime contributing […]

When you change jobs, you will usually leave that respective pension scheme. So what happens to my workplace pension when change jobs and leave my employer. With each employment that you have, you are now normally enrolled into a workplace pension. Which is known as Defined Contribution (DC). Whereby you […]

An annuity provides simplicity and provides you with a guaranteed income for lifetime or a fixed term period. Whereas drawdown (FAD) provides flexibility in that you have control of the pot in future, but it remains subject to investment risk and could run out in future, but you control it […]

Your pension should be seen as a long term investment product, but unfortunately it will go up and down on a daily basis. This is because it’s invested in the stock market, bonds, gilts etc. rather than sitting in a simple cash account. By taking such actions by your pension […]

So how does the increase in UK state pension age affect me ? The rise in the UK state pension age, increasing to 67 between 2026-2028 and potentially 68 later. Which means you will may likely have to work longer. Plus you may have to bridge a funding gap with […]

Quite simply, if you employer offers you salary sacrifice. You choose to give up some or all of any income or salary in return for any specific benefit. The range of benefits offered will obviously vary between companies and different employers. But they will form the following main categories: By […]

What is a pension?  Quite simply, a pension is a tax-efficient way of saving money for your later retirement. There are different types of pensions in the UK. As a result of previous actions, it does confuse a lot of people. Mainly because the rules keep changing and also because we […]

I question I get asked a lot – is how much tax-free cash can I take from my pension. Under current UK pension rules, you can usually take up to 25% from each of your pensions as tax-free lump sums, provided the total amount taken is less than £268,275. This […]

Under current UK pension rules, the earliest you can access your private or workplace pension is set to age 55. This is known as the minimum pension age and has been effective since 6th April 2010. Prior to this date it could have been aged 50, an individual could still […]

Thanks to the introduction of Auto Enrolment (AE) back in 2012, most people employed are automatically enrolled into a workplace Defined Contribution (DC) pension plan. But have you ever asked yourself, or even considered where are my monthly contributions invested. Where do my contributions actually go, after they are deducted […]

Unfortunately, Pension scams in the UK is common occurrence as it can be seen as being very profitable for pension scammers to obtain money by so-called fraud and deception. We don’t teach the basics about personal finance and the world of investing. As speaking to people on daily basis about […]

The annual allowance with regard to pensions is the amount that can be paid into a pension each financial tax year. This will apply across all your pension schemes that you may have. It doesn’t relate to each pension scheme that you may have. So what counts towards your annual […]

It’s a common question that I get asked during my consultations with clients. Can my children inherit my pension pot. This could be applicable if someone in single, so they have no spouse or partner. So they want to pass on any remaining funds to their children. It can also […]