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 ...

Don’t be caught short – the importance of a State Pension forecast

New research from Retirement Advantage suggests a lack of awareness among those approaching retirement over when their State Pension will be paid, and exactly how much it will be. In a survey of 1,103 over 50s, only 39% had asked for a State Pension forecast, which will tell you: How much State Pension you will receive When you are eligible to receive it How to increase it, if possible A State Pension forecast is an invaluable piece of information, serving for many as a foundation for retirement planning. Worryingly, the survey also ...

How to be a full-time parent with a full-time pension

Imagine working 168 hours a week with no lunch breaks and very little holiday. It should, in theory, mean that you can retire early and comfortably, right? Unfortunately, for the many stay-at-home parents in the UK, this simply isn’t the case. Research shows that full-time mothers and fathers are among those least likely to save for their retirement, leaving them exposed to financial hardship in the future. According to the founder of MummyMoneyMatters.com, Kalpana Fitzpatrick: "Stay-at-home mums are at the highest risk. Saving for retirement is simply not on the agenda, because ...