Pensions tax relief cuts: Why the government is vastly over-estimating what it could save from moving to flat rate relief February 23, 2016 In his Budget speech on 16 March, the chancellor is widely expected to announce – potentially quite radical – changes to the taxation of pensions. This will not just be important for pensions professionals. Fundamental changes to the way tax relief is granted could have significant consequences both for members of pension schemes and for those who [...]
Budget 2016: Former pensions minister Steve Webb and Royal London warn chancellor George Osborne that pensions changes would amount to “daylight robbery” February 23, 2016 Britain's largest mutual insurer has warned chancellor George Osborne could commit “daylight robbery” in next month’s Budget with major new changes to pensions. In a new report today, Royal London said a pensions ISA or a flat rate of pensions tax relief would hurt existing savers and discourage future saving. A pensions ISA, which was first [...]
Budget 2016: As chancellor George Osborne gears up for expected pensions raid, his Budget will serve up a reality check on the deficit February 22, 2016 As Westminster whips itself into a referendum frenzy following a week of thrilling political drama, it is worth remembering that more prosaic and domestic concerns lie ahead. In three weeks’ time, for example, chancellor George Osborne will steal the limelight away from Boris Johnson, David Cameron et al. when he delivers his 2016 Budget. Incredibly, [...]
Budget 2016: Former pensions minister Steve Webb warns Osborne will drop a “tax bombshell” with pensions overhaul February 21, 2016 Former pensions minister Steve Webb has warned that chancellor George Osborne is getting ready to drop a £4bn “extra tax bombshell” in next month’s Budget by getting rid of the so-called tax-free lump sum. Webb, who was pensions minister in the coalition and is now director of policy at Royal London, said today that existing [...]
UK pensions: Waspi campaign gets a boost as new survey finds that more than half of those scheduled to retire this year are already working past state pension age or are considering doing so February 19, 2016 Many of those due to retire this year are technically already pensioners, and yet more fear they cannot afford to give up work, a new report has found. The study released today by Prudential discovered that 51 per cent of those who are currently planning to retire this year have already reached state pension age [...]
UK pensions: Actuaries slam idea of triple lock, saying protecting pension provision for future generations depends more on better financial education February 18, 2016 Actuaries have today cast doubt on the government's key mechanism for calculating state pension. Responding to the Work and Pensions Select Committee’s inquiry on intergenerational fairness, the Institute and Faculty of Actuaries (IFoA) has said that triple lock is not only unnecessary but would also place an unfair burden on workers in the future. Under triple lock, basic state [...]
Pension changes: Government plans to let pensioners sell their annuities on a new secondary market have been universally criticised February 18, 2016 Pensioners will be able to sell on their annuities from next year, swapping regular income payments for a lump sum. It’s part of government plans to give greater freedom to the 5m pensioners who are already living with annuities. Some may be regretting their choice, and the idea of a fat lump sum instead of [...]
Osborne’s pensions tax relief shake-up explained: What could happen and what should you do about it? February 18, 2016 Former pensions minister Steve Webb made headlines earlier in the month by claiming that abolishing Britain’s current system of pension tax relief could be George Osborne’s “’Gordon Brown’ moment” (referring to the latter’s notorious tax raid on occupational pensions in 1997). Now a director at Royal London, Webb pulled few punches in outlining what he [...]
Osborne’s latest pensions raid: Flat rate tax relief would be both irrational and unfair February 18, 2016 Private pensions have always been a soft target for cash-hungry chancellors. Nigel Lawson made pension funds restrict the size of their surpluses under threat of losing their tax-exempt status. Gordon Brown abolished Advance Corporation Tax in the great pension raid of 1997. And George Osborne has done his bit by slashing the annual and lifetime [...]
UK pensions: Only three per cent of employers have helped staff understand changes to the lifetime and annual allowance for pension contributions, which are due to come in this April February 16, 2016 Some big changes are on the horizon for pensions, but just a handful of businesses are taking action to help their employees understand them, according to a new survey. Research released today by Close Brothers Asset Management has discovered that only three per cent of employers are offering specific support to staff members who are likely [...]