A report from a Conservative think tank suggesting a quicker rise to a state pension age of 75 has ruffled feathers, but is increased longevity making such moves inevitable? Is a state pension age (SPA) of 75 looking more likely? “Recommendation: The SPA should better reflect the longer life expectancies that we now enjoy and be used to support the fiscal balance of the nation…..
Investor expectations have been dialled up by the market returns of recent years. Independent Financial Advisers will need to add perspective and gently talk those expectations down. The latest Schroder Global Investor Study revealed some fascinating, and somewhat disconcerting, results.
– Investors expected an average annualised return of 10.7% from their portfolios over the next five years
– The younger the client, the higher the expectation.
– With an ageing population, low inflation and poor productivity, returns are likely to be lower from here.
Lump sum withdrawals under pension flexibility are resulting in over-paid tax due to emergency tax codes. Don’t be caught out. Recent HMRC statistics highlight the over-taxation of some pension benefits. More than one million people have received flexible pension payments thanks to the rules introduced just over four years ago. HMRC’s most recent statistics, to the end of March 2019, show that 1,113,000 people have withdrawn….
Statistics are showing a slowdown in the rate of improvements on our longevity, but don’t let the headlines mask the reality – your pension income is likely to need to last over 20 years. A recent report shows that life expectancy is still improving, but not as quickly as was once expected. “British life expectancy falls by SIX MONTHS for men and women”….
There comes a time when you stop working for your money and put your money to work for you. For most people, that is retirement. The decisions you make then could have repercussions for the rest of your life, and in recent years there have been some major changes to the retirement choices you can make with your pensions….
Your chances of reaching 100 are probably greater than you imagine. It may sound fanciful, but a 100-year lifespan is well within the bounds of probability. That could have profound implications for your retirement planning. While the average 70-year-old man now has a 4.1% chance of reaching his 100th birthday, an average 40-year-old woman has a nearly 13.8% chance of becoming 100. And the number of people who are likely to live well into their 90s has soared.
Changes to income tax, NICs and pension contributions are coming for 2019/20. One of the few certainties about 2019 is that the new tax rates and thresholds will take effect from the start of the 2019/20 tax year on 6 April and whilst the focus tends to be on year-end tax planning at this time of year, it is important to look forward to the new tax year and the changes that it will bring. From 2019/20 changes will come into effect for key income tax rates and thresholds, as well as pensions.
In early December the Department for Work and Pensions (DWP) announced the thresholds that should apply to automatic enrolment pension contributions from 6 April 2019. We say ‘should’ because, strictly speaking, they need final approval from the Secretary of State, although any change is extremely unlikely. There are three key levels to be aware of:…
The Department for Work and Pensions (DWP) is aiming to expand pension coverage among the self-employed. Pension automatic enrolment – or Workplace Pensions to you and I – has become a major success since it was launched nearly seven years ago, with almost 10 million people joining a workplace pension arrangement…
The State Pension Age (SPA) became equal for men and women for the first time, at age 65, on 6 November 2018. Having reached this landmark, the next stage of SPA increases has already started. For both men and women, the state pension will become payable for anyone born between 6 December 1953 and 5 January 1954 on 6 March 2019. The SPA will then be increased to reach age 66 by October 2020. The SPA is scheduled to rise again as existing legislation already covers the increase from 66 to 67, phased in over two years from April 2026. The same legislation provides for a step up to 68, starting in April 2044.