pensions

MPs call for contingent charging ban on pension transfers

The group of MPs, chaired by Frank Field MP, claim that contingent charging incentivises financial advisers to recommend transfers that may not be in the best interest of their client.

This creates a conflict of interest as it means scheme members do not need to pay an upfront fee for advice, with charges being levied only if the adviser recommends a transfer.

What could later-life love mean for your money?

Finding love in later life is becoming increasingly common in the UK, with the number of over-65s tying the knot up by nearly 50% over the last decade. But while it can bring happiness and security, a new partner at this stage can also bring its fair share of financial planning headaches.

Steve Webb: state pension deferment could make financial sense

Every month, the employment figures seem to show a new record for the number of people working past the age of 65. At the turn of the century, there were fewer than half a million people in employment or self-employment aged 65 or over, but that number has now trebled to more than 1.2 million.

Final salary pension transfers: scenarios when you should consider transferring

Around 100,000 final salary pension scheme members traded in a guaranteed income in retirement for a cash lump sum last year, according to the Financial Conduct Authority (FCA).

For many, the motivation is that a transfer out of an employer’s final salary scheme allows them to take advantage of the rule allowing people aged 55 and over to take 25% of the fund tax-free – a tidy sum when the average transfer exceeds £250,000.

Four years of pension freedom: the unintended consequences

It’s four years since the introduction of pension freedoms giving retirees greater flexibility around when and how they access their retirement savings. While there is little evidence that people have blown the lot on Lamborghinis, there are some lessons to be learnt from our pension spending habits.

Workers who reduce pension payments could lose employer contributions

Members of workplace pension schemes could potentially miss out on employers’ contributions if they choose to not increase their own contributions following the latest auto-enrolment increase.

Under auto-enrolment rules, as of 6 April the amount of money employees will pay into their workplace pension will increase from 3% of their qualifying salary to 5%.

The biggest challenge of ‘pension freedom’ revealed

Three in four retirees say the biggest challenge they face when they come to access their pension is knowing how to construct an income-generating portfolio at retirement.

The finding was revealed by Aegon from a poll of 250 financial advisers, ahead of the fourth anniversary of the pension freedoms later this week (6 April).

This cunning tax-year-end plan could help retirees save 20% tax

Up to 75,000 pensioners with annual incomes approaching £50,000 could save 20% tax by delaying their final pension payout of the tax year until after 6 April.

The higher rate income tax threshold is due to rise from £46,350 to £50,000 on 6 April, which means that those with incomes within this range will be paying 20% rather than a marginal rate of 40% tax from next tax year.