How can you stop your pension running out?

Do you know how much the current State Pension is? It must be enough to live on, surely? It is often reported that people are ill-prepared for their retirement, and for good reason. Research from Scottish Widows suggests that nearly one in five of us aren’t saving enough into a pension. Many are increasingly relying on the State Pension to fund their retirement, but this is a risky plan. It was announced in July that the State Pension Age will increase seven years early, affecting over seven million people. Taking control of your ...

Should you use your pension to pay off your mortgage?

Close your eyes and imagine receiving a large amount of money. What do you see? What does it buy? The exact amount will dictate what is possible, of course. But, many would pay their mortgage off before dreaming of shiny new cars, skiing holidays, or for the more frugal, maybe a new… toaster? Whatever the money will be spent on, repaying your mortgage is often the first thing on people’s minds. And for good reason; those monthly mortgage payments are often the main reason people can’t give up work early (or at all, ...

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, ...

Why Pension Freedom is costing retirees millions of pounds

There’s no doubt that Pension Freedom has helped many people retire early, as well as taking money from their pension in a way which suits them. It isn’t all good news though. New figures show that despite the increased flexibility, those people who buy an Annuity are still losing out on millions of pounds each year. Research reveals losses The research from Retirement Advantage, shows that in the two years since Pension Freedom started: 50% of people buy their Annuity from their current pension provider Not shopping around will cost pensioners £765 million over ...