How do you feel about state pension age increasing to 75?

How do you feel about state pension age increasing to 75?

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 recently

Inflated expectations

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.

Pension flexibility: too taxing for many - Pembroke Financial IFA's

Pension flexibility: too taxing for many

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 HMRC’s most recent statistics, to the end of March 2019, show that 1,113,000 people have withdrawn….

Planning for the 100-year life - Pembroke Financial - Brighton IFA's

Planning for the 100-year life

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.

Preparing for the new tax year with Pembroke Financial Services

Preparing for the new tax year

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.

Earnings thresholds will rise with auto-enrolment contributions

Do your employees know that earnings thresholds are rising with auto-enrolment contributions?

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:…

State pension age equality means increases for everyone

State pension age equality means increases for everyone

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.