Independent Financial Life Planners Bishop's Stortford: How to leave your pension to someone else

Tuesday, 7 July 2015

How to leave your pension to someone else

Enable’s IFAs in Bishops Stortford have had lots of conversations with people about their pensions since all the changes this April. One thing many people don’t realise is that it has become easier to safeguard your pension for your heirs and you can now nominate anyone to inherit your remaining pension fund as a drawdown account with the right pension.

If you feel you have worked hard and saved all through your life so as to have a pension to provide enough to live on in retirement you will be delighted to realise that more of that fund can survive your death, providing an income or nest egg for your loved ones. Even though pensions haven’t counted as part of an estate for inheritance tax purposes, until recently there has been a hefty 55% pensions death tax. Since this was thrown out earlier this year as part of the government’s “pensions revolution”, it has provided an enormous opportunity to leave some, or all, of your pension pot in a tax-efficient way.

Broadly speaking, if you die before the age of 75 your beneficiaries will pay no tax on any pension savings left to them. So the wealth you built up in a pension can be passed on as inheritance without losing the tax shelter or any tax charge. Only on your 75th birthday do your pension assets become taxable, but only at the marginal rate of income tax. You can nominate anyone to inherit your remaining pension fund as a drawdown account. This means beneficiaries can dip into the pension pot they inherit as and when they want. If you want to find out more about this Enable’s IFAs are happy to talk you though your pension options.

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

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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.