Question: Why save into a pension? Answer: Money for nothing
The recent changes to both the Annual Allowance and the Lifetime Allowance means that pension saving should be attractive for just about everyone and when saving for retirement, a pension will in most cases provide better net returns than an ISA, purely based on the tax mechanics. In no cases will it provide a worse […]
Is Flexi-Access Drawdown too good to be true?
For many years it has been possible to take benefits from a pension scheme in a method known as a pension drawdown. This approach has undergone various changes and until 2015 the most common form was “Capped Drawdown”. In 2015 the government changed the rules (again). From ‘left field’ a new form of drawdown was […]
The Rule of 72 ‘Forecasting Made Easy?’
Projections or forecasts are a key part of most financial plans. Although only an estimate, a forecast of the likely levels of income, expenditure, assets and liabilities in the future does enable plans to be made to meet individual objectives. Any forecast should be as accurate as possible and should be reviewed on a regular […]
Tax Efficient Inter-Generational Savings Plans (aka Pensions)
Pension rules have changed significantly over the last few years. Two of the most welcome changes were the removal of the need to ‘do’ something by age 75 and the possibility of bequeathing unused funds to next of kin or chosen beneficiaries. In combination, these rule changes now mean that it is possible for a […]
Combatting inheritance tax (IHT) (2/2): Are your pension nominations up-to-date?
I wrote previously how many people view inheritance tax as the unfairest tax of all. I explained that a previously efficient will could be out-of-date due to the new inheritance tax residence nil rate band. The same can be true of existing pension nominations. Pension Death Benefits Pension funds are absurdly tax efficient. Pension funds […]
Combating inheritance tax (IHT) (1/2): Is your will up-to-date?
Many people view inheritance tax (IHT) as the unfairest tax of all. First of all you are taxed on income when it is earned, then savings/investments, for the most part, are taxed whilst they are accumulated and then inheritance tax is often seen as the third “bite” on your wealth. Many feel aggrieved that having […]
