UK Pension Review, QROPS, LTA Limits

How often do you review your pension?

Financial experts have likened reviewing your pension pots to going to the dentist. Both are annual necessities, but are also tasks that resident Brits and expats alike often procrastinate until they are faced with a problem. Even if you’ve recently had a UK pension review and all of your schemes are performing on target, savvy financiers know that it is important to continually redefine savings objectives and alter investment strategies accordingly. The local and global economic climate is constantly changing. Seeking advice from a professional in any of the following scenarios enables you to get the most out of your money and comfortably maintain your lifestyle during retirement years.

New Legislation

On April 6, 2016 the UK’s Lifetime Allowance (LTA) decreases from £1.25 million to £1 million. If you are nearing the £1 million LTA limits, a pension review may be a good idea.

Occupational Changes

The Telegraph reports that the average Briton will change employers six times during their career, whether in the same industry or a different one entirely. Each new job typically means automatic enrollment in a new pension scheme. Reviewing your all of your pensions and consolidating smaller funds into a single pot not only makes them easier to manage, but could also yield more money. Older pensions may not be as lucrative and competitive as modern schemes. They may also have steep management charges. Each pension should be reviewed individually, however, as transferring certain types of occupation pensions could forfeit guaranteed annuity rates. There may also be exit fees.

Life Events

Occupational changes aren’t the only life events that warrant a UK pension review. At Alconbury Trust, we recommend a consultation:

• Before a divorce
• When moving out of the country
• Upon receiving death benefits
• As you approach retirement age

Each of these happenings has a significant impact on your finances. You may need to adjust the risk level of your pension, transfer assets to an offshore account or change your investment strategy altogether.

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from Alconbury Trust http://www.alconburytrust.com/uk-pension-review-qrops-lta-limits/

Government review of state pension age

Work until you’re 75 or even 81 under Government review of state pension age

Possible age hike comes as minister hints at pensions tax raid on middle-class savers
March 2016 – By Steven Swinford, Deputy Political Editor http://www.telegraph.co.uk/

Millions of people could be forced to work until they are 75, the Government has hinted as details of a review into the state pension age were published.
Ministers have announced a radical review of the pensions regime amid concerns that he current system is not “affordable in the long-term”.

The review will be chaired by Sir John Cridland, the former head of the Low Pay Commission, and will assess whether the current pensions system is “affordable in the long-term”.

HOW MUCH YOU CAN PAY INTO YOUR PENSION

• Your contribution limits for the tax year 2015/16
• You can contribute as much as you earn in a year, up to £40,000 a year
• You can also use HMRC’s “carry forward rules” to use the past three year’s pension contribution limits – if you haven’t already
• nce you start drawing from your pension your annual limit reduced to £10,000
• he lifetime pension limit is reducing from £1.25m to £1m next year

Read more on Government review of state pension age

 

 

The post Government review of state pension age appeared first on Alconbury Trust.

from Alconbury Trust http://www.alconburytrust.com/government-review-of-state-pension-age/