Independent Financial Life Planners Bishop's Stortford: What will future pensions bring?

Tuesday, 28 July 2015

What will future pensions bring?

It would be hard to have missed that in April, there was a major overhaul of pensions, allowing people to take out some of their pension in cash. At Enable we did not see many people taking advantage of the new regulations. But if you took money out of your pension using the new "flexible access" provisions, your annual allowance will have been reduced to £10,000 not the £40,000 annual allowance you had before.

The current pension regime still gives tax relief when you put money into a pension and this pot grows largely tax-free. You are only taxed when you take money out, apart from a 25% tax free lump sum. If your employer pays into the scheme, or funds a final salary pension, there is no employee or employer National Insurance Contributions (NICs) on the value of these payments or benefits. But among the Budget papers was s a consultation document which suggested further possible change that could mean replacing this long-standing system.

So instead of tax and NICs relief on contributions, pension saving would be made out of after-tax income, as with the Individual Savings Account (ISA) system. Then when the money was finally taken out, it would be tax-free. The Budget also announced the abolition of "pension input periods". It is really important to get your timings right to make the most of your pension. Enables IFAs in Bishop's Stortford can help you think through your options so that you can make the most of your pension savings in the future.

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.