An increase in National Insurance (NI) by 1% for the over-50s is one of the solutions to tackle the social care crisis puzzle, according to think tank the Centre for Policy Studies (CPS).
According to ING’s international survey on savings, 54% of Britons now expect that they will need to keep earning in retirement.
Of these, 58% expect that they will be working in the gig economy or temporary employment.
The financial watchdog the Financial Conduct Authority (FCA) has launched a consultation on new rules that aim to stop retirees from making poor decisions about how they invest their pensions.
As many as 100,000 over 55s go into income drawdown every year without seeking financial advice, according to the FCA.
The pension freedoms introduced in April 2015 saw a dramatic change in how we save for and fund our retirement. The key change was around unrestricted access to pension funds, handing individuals the opportunity to put themselves in the pensions driving seat. But navigating these new opportunities is easier said than done: below are two examples that spring to mind.
Anyone over 40 is now entitled to a free NHS mind and body health check every five years, at which they might expect to receive the cheerful advice – “use it or lose it”. A wealth adviser or manager looking to keep your finances in top condition might declare the same of your pension.
After two years in the works, the government has today implemented a ban on any cold-calling related to pensions.
This means in effect that any phone call that you receive from an unknown person or company, where they ask about your pension, is not a legitimate call.
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 Financial Conduct Authority (FCA) has finalised new rules on final salary pension transfers, in order to improve the quality of pension transfer advice.