Retirement: Is now the right time to transfer your Final Salary pension?

TransferOver the past few weeks we’ve seen several stories in the personal finance press imploring you to transfer your Final Salary pension. Frankly, this worries us. So, we thought we’d look at some of the issues in more detail. Firstly though, we should point out that this article equally applies for Final Salary and Defined Benefit pensions. But for ease, we’ll just use the Final Salary term from now on. To stoke the fires, this weekend saw Royal London, a pension provider, report that Cash Equivalent Transfer Values (CETVs), the technical term for the pot of ...

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: Short-term future of pension tax-free lump sum revealed

PENSION on calculator displaySpeculation over the future of the pension tax-free lump sum is over, at least for a few months! Savers with a Personal Pension, Stakeholder Pension, SIPP and some work place pension schemes, can take up to 25% of their pot once they reach the age of 55. The tax-free lump sum is important to most retirees and is often used to repay debt, pay for home improvements or simply to create additional income in retirement. Tax-free cash speculation In the weeks leading up to each Budget and Autumn Statement, the ...

Budget 2014: All you need to know about the changes to your pension

All you need to knowGeorge Osborne stunned pension savers, financial advisers and Annuity providers alike, with his proposals in the Budget, that from April 2015 it would no longer be a requirement to provide an income from a pension and the whole fund could be taken as a lump sum. So what’s changed? How will you be affected? Is it good or bad news if you are close to retirement? We’ve got all the answers. Let’s start with the basics, ...