Unfortunately, some individuals do not realise the importance of planning for their retirement. The amount of money saved for retirement will eventually have a profound impact on how we live our lives and our standard of living in our golden years.
UK and European investment company managers comment on the outlook post-Brexit
On Wednesday 29 March, Article 50 of the Treaty of Lisbon was triggered, formally notifying the EU that the UK intends to withdraw from membership and starting the clock for leaving negotiations.
Do you have the time to keep fully up to speed with everything that’s going on?
With a burgeoning choice of products on the market, and considering the busy lives we all lead, it can be difficult to find the time to keep fully up to speed with everything that’s going on – especially when you consider that financial products are unlikely to remain the same throughout your lifetime.
On 8 March, the Chancellor of the Exchequer, Philip Hammond, delivered what people had expected – a Budget of few surprises to provide a ‘strong, stable platform for Brexit’. However, he did reveal the tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018.
Tax rate charge on transfers on or after 9 March 2017
Qualifying Recognised Overseas Pension Schemes (QROPS) transferred on or after 9 March 2017 are now subject to tax charge at a rate of 25% on the transfer. The measure took effect with respect to relevant payments from QROPS from 6 April 2017.
Tax relief means some of your money that would have gone to the Government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions.
The lifetime allowance is a limit on the value of payouts from your pension schemes – whether lump sums or retirement income – that can be made without triggering an extra tax charge.
The State Pension changed on 6 April 2016. If you reached State Pension age on or after that date, you’ll get the new State Pension under the new rules.
With a defined contribution pension, you build up a pot of money that you can then use to provide an income in retirement. Unlike defined benefit schemes, which promise a specific income, the income you might get from a defined contribution scheme depends on factors including the amount you pay in, the fund’s investment performance and the choices you make at retirement.
