The turbulent stock markets at the moment are concerning for everyone, but especially for those who are in a defined contribution (DC) pension scheme and looking to retire. Since the pension freedom rules came into place in 2015, anybody aged 55 or over can access their pension. However, retirement planning is crucial, particularly when markets are volatile.
Retirement planning can be a daunting task – with so many options available since the pension freedoms, it can be easy to feel overwhelmed with the amount of complex information available. According to the Pensions Policy Institute (PPI), many people struggle to understand important financial fundamentals when it comes to retirement, such as tax, inflation, or how retirement income products work.
Many people use the new year as an opportunity to review their finances and make plans for the year ahead. If you are planning to retire this year and have a defined contribution pension, you have a lot of options to consider before making any decisions.
When it comes to accessing retirement savings, it seems that there are a lot of mistakes being made.
Recent research has found that many people don’t understand income drawdown but are still using it to access their pension without getting regulated financial advice or shopping around first, and over a quarter of over 55s are unaware of tax on pensions if they take the money as cash.
22% of UK adults expect that they will never be able to afford to retire, equating to almost 8 million people, according to latest research. A report from the Department for Work and Pensions also found that there may be 12 million individuals who are not saving enough for their retirement. But what can individuals do to save more, even when they think they can’t afford it?
The end of the tax year is in sight, so now is a great time to have a good look at your finances and make sure you are making the most of this year’s savings allowances and maximising your saving potential.
In light of this, below is a list of top saving allowances to utilise before the tax year end, as well as those to take advantage of in the new tax year.
The New Year is a great opportunity to take a good look at your finances and make financial plans for the coming year. Individuals who are facing retirement and have a defined contribution (DC) pension will have a number of decisions to make, given the freedom and choice in pensions.
To help with this, we have created a list of top 10 tips for those who are thinking about retiring in 2019.
People could end up paying 200 times more tax, depending on how they decide to access their retirement income, according to research by the Pension Policy Institute (PPI).
The findings were based on the tax that someone would pay if they fully withdrew their defined contrition (DC) pension, compared with annuity purchase.
The majority of employers believe their staff are not saving enough for retirement. This is usually due to affordability or lack of understanding, but what many individuals don’t realise is the huge difference small changes to their spending habits could make to their savings levels overall.
Here are top 10 tips for individuals wanting to cut their costs and boost their savings:
Latest figures show that £110 million was collected in tax from individuals exceeding the Lifetime Allowance.
This is the maximum amount of savings which can be saved into a pension and receive tax relief, and the figure has rocketed by £100 million since the limit was first set in 2006.