Independent Financial Life Planners Bishop's Stortford: Pensions and the Autumn Statement

Wednesday, 10 December 2014

Pensions and the Autumn Statement

At Enable in Bishop’s Stortford the current changes around pensions have been much on the minds of many of our clients. The chancellor did not offer any more radical change in pensions but did announce the return of Pensioner Bonds or “Granny Bonds” as they used to be known. The Pensioner Bonds will be issued in January, and are expected to be hugely popular, as ever. They will be available to the more than 11 million people in the UK over the age of 65. The announcement said “there will be a one-year bond, which is expected to pay around 2.8% in interest, and a three-year bond, which is expected to pay around 4%.” Pensioners will be able to save a maximum of £10,000 in each bond – giving them another option for £20,000. The Treasury has also said that only a total of £10bn of the bonds will be issued, suggesting they could sell out very quickly.

The other thing that had clearly been in the pipe line is the Tax free status announced for annuities for dependents of people who die under the age of 75. This means that thousands of retirees who have pension annuities will be able to pass on the benefits free of tax, if their spouse dies before the age of 75. Previously they would have been liable for a 55% "death tax" on money in annuities now they will be able to receive the income from such policies without paying tax.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

No comments:

Post a Comment

IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.