Confusion over pension contribution cap resolved

The Government has moved to resolve the confusion over the amount some people can pay into their pension. Although, not everyone will be happy with the news. Announced in the Budget earlier this year, the change proposed a cut in the amount some people could pay in to their pension. Known as the Money Purchase Annual Allowance (MPAA), it caps the amount some people, who have already drawn money from their pension under the new Pension Freedom rules, can subsequently contribute. The Government proposed a cut from £10,000 to just £4,000. However, ...

As Government delays pension tax-relief plans, what action should you take?

Horizontal shot of a hand squeezing the word "Pension" between two fingers, isolated on white. The Government has announced it will not publish its plans for reforming the way pension tax-relief is paid, until the Budget in March next year. Many experts believe that the delay means the system will be radically overhauled, as the Government looks to cut spending and that some pension savers may have a short window before the tax-relief they receive is cut. How does pension tax-relief currently work? At present you can make a pension contributions each year equal to the ...

‘In the Spotlight’: Andy Bell on SIPPs and the future of retirement planning

Spotlight AJ BellIt is often said that the only constant in pensions is change. So far in 2014 we’ve seen more than our fair share and we’re still only half way through the year. So, who better to talk us through it all than Andy Bell, founder of AJ Bell, one of the UK’s largest SIPP operators with around 100,000 customers and just over £20 billion of funds under administration. Our Marketing Manager, Phillip Bray, posed the questions. Phillip Bray: You have a proposition for advisers as well as DIY investors, which has been ...

Annuities: Which way now for Annuity rates? We ask the experts

Crumpled question marks heapUnless the Government does the mother of all U-turns, people over 55 will get unprecedented access to their pensions from next April. The proposed changes have lead many people to suggest that Annuities are effectively dead. Frankly, we think that’s rubbish and potentially dangerous. For people who want a simple solution, with no investment risk or need for ongoing management and a relatively attractive return, an Annuity is likely to be the right option....