Retirement: What is the mistake thousands are making with Pension Freedom?

Whilst many people will undoubtedly benefit from Pensions Freedom, which started in April, new research has shown thousands of people are potentially making a very costly mistake. Under the new rules anyone over the age of 55 can make unlimited withdrawals from their pension pot. The first 25% you withdraw is tax-free, with the balanced added to your income in the tax-year they money is taken out and then taxed. Why are people taking money from their pension? Many people, who have saved hard for retirement, are not taking large lump sums, preferring ...

Retirement: Relying on property to help fund your retirement? You’re not alone

Relying on property to help fund your retirement? You’re not aloneTwo new surveys have shown the extent to which people are relying on property to help fund their retirement. The first, by More 2 Life, found that 41% of people approaching retirement are now including their property wealth as a key part of their retirement planning. The second survey, by Key Retirement, shows that retired homeowners have seen their combined property wealth increase by £33 billion in the last six months alone. The astonishing rise is equivalent to an average of £1,200 ...

Savings: Interest rates start to creep up, but be careful!

Interest rates start to creep up, but be careful!New research has shown that interest rates on savings accounts are starting to creep up; but the good news comes with a health warning. According to the comparison service Moneyfacts, the average interest rate on the top 10 ‘easy access’ savings accounts, has risen to 1.48%, up from 1.39% a year ago. The rise comes at a time when speculation has intensified that the Bank of England may push up interest rates over the course of the next few months. Whilst savers, who have had ...

Inheritance Tax: A quick guide to the recent changes

Understandably, much of the focus in the world of personal finance has been on the pension changes announced last year and implemented in April. However, there are also big changes on the horizon for Inheritance Tax (IHT) and with a recent survey from LV= showing that millions of people will rely on an inheritance to fund a comfortable retirement, we thought we’d take a look at what’s changed, whilst explaining some other IHT ‘basics’. What’s changed? The big change, announced by George Osborne in his recent Budget, is that IHT will be scrapped ...