pensions

How public sector workers can sidestep pension tax traps

Doctors and other public sector workers such as school heads and top civil servants face punishing tax penalties for inadvertently breaching the legal limit for tax-free annual contributions to their pensions.

The situation is so bad that hospital consultants and GPs, who invariably work extra shifts to cover NHS staff shortfalls, are effectively working for free once their tax penalties have been taken into account.

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.