Pension News
Transferring Defined Contribution Pensions
Often when an employee leaves a job, they are given the option to continue contributing to their current scheme. However, some people like to explore their options and transfer their defined contribution plan into a new scheme which provides them with more options. Employees approaching retirement may also consider transferring their pension, often because their […]
Defined Benefit Pension Transfers
Defined benefit (DB) pension schemes are often desirable for their potential extra security in retirement. They ensure that people are guaranteed a certain level of income upon retirement. But in recent years, people have been given the option of exchanging their DB pension for a cash value and transferring into a different pension type. Significant […]
Can I transfer a stakeholder pension?
If you hold a stakeholder pension and are considering transferring it to a different pension type or provider, then this is possible. You will need to consider a number of different details before making a decision: * If a transfer is in your best interest * Where you should transfer your stakeholder pension * If […]
Pension Risk Transfer
What is ‘pension risk transfer’ and how does it affect me? A pension risk transfer is when a defined benefit pension scheme no longer wants to keep paying out a guaranteed income to its members. This can be for various reasons, for example: people living longer, more people joining the scheme than predicted, or less […]
Can I transfer my protected rights pension?
Since these protected rights funds have become your normal defined contributions (DC) benefits, your question is on whether you can transfer your funds from your existing scheme to another. You can certainly transfer your defined contributions benefits to a range of schemes, as long as your chosen scheme is another registered UK pension plan. When […]
Occupational pension transfers
What is an Occupational Pension Transfer? An occupational pension transfer is where you give up your pension in return for a lump sum and reinvest it in another scheme or use the cash sum yourself. Since the Financial Freedom Act 2015, more people are taking advantage of a pension transfer from a salary-related pension scheme, […]
Pensions transfers upon death
What are the rules around transferring a pension on the holder’s death? When it comes to the rules for pension transfers upon death, unfortunately they differ between pension types and provider. Some rules relating to age and taxes remain the same, however: * If the pension holder died before they were 75, then any benefits […]
Can I transfer from a NEST pension?
You can transfer money out of your NEST at any time, provided it is to another registered pension scheme. It’s important to note that you must have stopped making contributions into your NEST retirement pot, before you can transfer your money to other pension schemes. What other pension schemes could I transfer to? As long […]
Can I transfer my workplace pension?
In most cases, transferring your workplace pensions is possible. To be certain, you should check the details of the company pension or pensions, you’re considering transferring, paying special attention to the terms and conditions section. When transferring your workplace pension, you must make sure you read all the details relating to a transfer carefully. That’s […]
Can I take a 25% lump sum from my final salary pension and leave the rest where it is?
I’m 57 and have a final salary pension. I want to know whether I can take 25 per cent and leave the rest. If I do have to remove it all together would I receive less than its current value? Whilst I can’t advise on whether taking a 25 per cent lump sum would be […]
Can I transfer my pension to an ISA?
Although transferring funds directly from a pension to an ISA is not typically permitted, provided it is defined contribution (DC) pension scheme, you are likely able to withdraw your funds from the age of 55 and move them to another product, such as an ISA. You can do this with a defined benefit pension (DB), […]
Transfer a Deferred Pension
What is a deferred pension? A deferred pension is a UK pension where you have stopped paying into the scheme, but you are not yet receiving a pension. Or that you have delayed claiming your pension, based on the premise that the longer you wait to claim, the more money you will receive in payments. […]
Can I transfer an ISA into a pension?
If you’re a UK resident and either a basic-rate or higher rate taxpayer, ISAs are a very attractive form of saving as any gain is free of both income and capital gains tax. However, whilst ISAs are allowed to grow tax-free they do not offer tax relief on any contributions, which is such a key […]
Can I Transfer my Pension to Another Person?
You can only transfer your pension to someone else in exceptional circumstances. A pension is personal and there is no legal structure to transfer your pension pot to someone else, except in the case of divorce or dissolving a civil partnership. The only other circumstance when your pension pot can be transferred to someone else […]
Can I transfer a Section 32 Pension?
If your pension holds enough funds to honour all the rules of the pension when it was initially transferred out, then you can transfer your section 32 pension out to a different pension and provider. If it doesn’t hold enough funds, which you can no longer add to then transferring a section 32 pension becomes […]
Can I Transfer my UK Pension to a New Job?
If you leave an employer, the pension you have accrued whilst employed remains yours, so even if you leave your pension in situ, you will still receive that as a pension when you reach the retirement age as stipulated in scheme’s rules. You can continue to pay into it yourself, or you can transfer the […]
How Long Should a UK Pension Transfer Take?
The timescales will vary however, according to research carried out by the Financial Conduct Authority (FCA), the average time it takes to complete a uk pension transfer is 16 days. Remember that is the average, as there have been cases where transfers have taken over six months, the average for a defined benefit transfer is […]
How Safe Is My SIPP?
Your SIPP is protected, though the extent of this protection depends upon the investments your SIPP holds. FSCS protection The Financial Services Compensation Scheme (FSCS) was designed to help you when an authorised firm fails. It paid out over £110m in compensation for SIPP-related claims in 2017-18. Having FSCS protection means that… * It’s automatically […]
How couples differ in retirement planning
Financial planning for couples generally starts with the assumption that the two parties will share common goals, that they want to do things together and know how to agree on what they will do next. But that is not always going to be the case, especially around the challenges of retirement. Perhaps the single, greatest […]
What are the UK Pension rules?
How does tax relief on pension contributions work? To encourage people to save for their retirement, the government will pay tax relief on money you pay into a UK pension. This is equivalent to the level of income tax you pay and effectively means you make your contributions from pre-taxed income. So, if a basic-rate […]
UK Pension – Can I cash in my entire Pension?
Part of the April 2015 pension rules changes, made it possible to take your entire UK pension fund in one go as cash for you to spend as you wish. You can do this from the age of 55. However, there are considerable tax implications to be aware of before doing this. You can close […]
What is a UK Company or Workplace Pension Scheme?
A Company or Workplace UK Pension is one that’s organised for you by your employer. They work by you paying a percentage of your salary into the pension scheme every payday. Should I take a workplace pension? In the majority of cases, the government and your employer contribute to your pension. This is the defining […]
Should I transfer my final salary pension?
You can transfer a final salary workplace pension to unlock the cash from it, but you need to be aware of all the facts before you consider transferring a final salary pension. What are the benefits of final salary pensions? Defined benefit and final salary pensions give you a guaranteed income when you come to […]
UK Pension Reviews
How well is your current UK pension plan performing? UK Pension reviews You may not be appreciative of the importance of reviewing your UK Pension scheme on a regular basis, principally since the UK Pension Freedom reforms of 2015 gave people more choices for accessing their retirement savings than ever before. Tax relief on contributions […]
Salary Sacrifice & Salary exchange UK Pension Schemes
If you want to put more disposable income into your pension then a Salary sacrifice scheme maybe the solution. Salary sacrifice schemes or salary exchange schemes are becoming more popular for employees looking to increase their pension contributions. What is a salary sacrifice scheme? A salary sacrifice pension scheme is an arrangement between you and […]
Frozen or dormant UK Pensions
Many people have enrolled into UK pension schemes when starting a new job, but have subsequently left and forgotten to combine the funds when switching to a new employer or perhaps they didn’t realise they needed to. These inactive pensions are often named frozen pensions, or sometimes referred to as dormant pensions or preserved pension. […]
Investing in Property with a Self Invested Personal Pension (SIPP)
How does a property SIPP work? A Property SIPP isn’t a different type of SIPP, any SIPP can hold property within its portfolio. It has all the tax efficiencies of a traditional SIPP, but it doesn’t allow you to invest directly in residential property. You can though, use a SIPP to invest in commercial property, […]
Can I Transfer my UK Pension to my US 401k?
Can I transfer my UK pension to the US? There are roughly one million British expats who are now resident in the US, there are also many hundreds of thousands of US citizens who have worked in the UK and are entitled to UK Pension benefits. If you are planning to retire in the USA […]
State Pension Inheritance Rules for Unmarried Couples
Many private pensions schemes can now be inherited by cohabiting partners by simply stating your next of kin in the death benefit nomination forms, however the UK state pension system is different and entirely based around legal marriage or civil partnership. In the UK over six million people are living together as couples, but the […]
Is Self-invested Personal Pension (SIPP) right for you?
hile SIPP’s are appropriate and suitable for some investors, they are not suitable for everyone and some investors may find that other pension savings schemes could be much better suited to their circumstances. There are people investing in Sipps who shouldn’t be, and paying more in fees than they should be, who would be better […]
UK expats moving to the US – Taxation Guide
If you are a UK Expat and are moving to the USA there are tax implication you may need to contemplate. Whatever the country you are wondering moving to, you will always need to pay taxes, and every nation has its own system and some are considerably more complex than those in the UK. The […]
The Advantages & Disadvantages of Taking Lump Sums From Your UK Pension
Uncrystallised Funds Pension Lump Sums You can leave your money in your current UK Pension fund and take lump sums when you need to. This is named ‘uncrystallised funds pension lump sums’, or UFPLS. They are uncrystallised because you haven’t moved the money out of the pot and into another product, such as income drawdown […]
The Financial Benefits You Can Claim When You Retire
When you retire, there are a variety of benefits, discounts and advantages on offer once you reach retirement age. Some are offered by the state like pension top-ups, there is help to enable you to meet the cost of energy bills or free and discounted travel. However, you have to remember to claim them, as […]
How to save into a UK Pension if you are self-employed
Saving for a UK pension for those who are self-employed can often be more challenging compared to people who are not self-employed. This particularly holds as the self-employed are not automatically “auto-enrolled” into any particular UK pension. In comparison, auto-enrolment makes it compulsory for employers to offer eligible workers a workplace pension, and it is […]
Looking after your dependants when you retire
When you retire, as well as ensuring that you will have enough money, it’s a good idea to make sure that your partner and/or children will be provided for too. There are several ways this can be achieved. Before retirement Once you retire Buying an annuity Before retirement All defined benefit workplace British Pension Schemes […]
UK Pension Transfers – Understanding International SIPPS
Demand for UK Pension Transfers Overseas remains high among UK expats despite UK taxman’s constant adjusting. For many advisers focusing their efforts on a market that has reduced by 75% over the past four years might not seem like a sensible idea. But the falling number of UK Pension transfers to qualifying recognised overseas pension […]
UK Pension Transfers – Understanding QROPS
The Qualifying Recognised Overseas Pension Scheme (Qrops) system was first introduced in April 2006. It was designed to allow UK expats permanently living overseas to simplify their affairs and enable them to continue to save to provide an income for retirement by allowing their UK pensions transfer to a QROPS based pension based in their […]
Widow’s UK pension and bereavement allowance
What financial support can I get when my partner dies? If you’re financially dependent on your partner or spouse, you may consider how you will cope financially. The government does offer some financial support to those who have lost a partner. The bereavement allowance. It used to be known as the widow’s pension. How much […]
Retiring overseas and paying tax
Retiring abroad could affect your income tax bill, as well as the amount of tax you pay on your savings and pension. Do I pay UK tax if I live abroad? If you move abroad for good, your income tax liability moves with you. You may still have UK tax to pay on investment or […]
Annuity Rates
What is an annuity rate? Annuity rates determine the amount of regular income you will receive in return for your UK pension savings. They are displayed as to how much money you’ll get every year for every £100,000 you pay in. An annuity rate of 5% would mean you’ll get £5,000 for every £100,000 you […]
Take 25% tax-free, then get a flexible income drawdown product
With this option you take your 25% tax-free lump sum all at once. Then with the remainder you get a flexible income drawdown product. What is a drawdown? This is an investment product. So your money will be buying a mix of investments – shares, funds, gilts, corporate bonds or more. The aim is that […]
Maximise your UK pension by avoiding the main dangers
There are many UK pension planning dangers to avoid. Consolidate your UK pensions from previous employments Consolidating your pension pots from previous employments into one flexible pension account is usually cheaper to administer and easier to understand, with a single balance that you can check any time. Consolidation allows you to take your savings out […]
Take lump sums leaving the rest invested in your UK pension
You take cash from your UK pension as and when you need it, but the bulk of your pension money remains exactly where it is in your pension making it similar to a bank account. How does it work? When you do take cash, a quarter of each amount is tax-free, the rest is taxed […]
Retiring abroad and your UK pension
Find out how your UK Private pension and UK state pension is paid and how your other retirement savings are affected when you retire abroad. Retiring abroad with a UK state pension The basic state pension for 2020-21 is £134.25. To get this under the old system, you need to have made a minimum of […]
Keep the cash in your UK pension
Keeping your cash in your UK pension the most common option for those who are of an age when they can take their pension. Because while you can take your pension from age 55, for many people that is too young because they will still be working – if you’re 55 but you’ve got another […]
Receiving your UK pension
When the time arrives to start receiving your pension you will need to make a few decisions, firstly though you need to understand what sort of pension you have. There are to main types of UK Pensions: Defined Contribution Pension The majority of pensions in the UK fall into this category. With this type you […]
UK Pension Advice – How long will you live?
You pay into your pension all your working life and once you’re over 55 you’re allowed to take the money out. However, the point of saving for your pension is usually so that you’ll have money to use when you’re finished your career. If you use the money before you stop working, or even before […]