Gary Hans FPFS, MSc, CFP, TEP’s Post

Lot's of pensioners think their income and/or savings are too high for them to get any Pension Credit so they don't bother looking into it. That's always an issue but it's especially problematic this year as they could miss out on the Winter Fuel Payment. The entitlement rules for Pension Credit are complicated so it's no wonder that pensions and people who work with them can struggle to identify if someone will be entitled. That's why we've developed our Pension Credit Primer - available for free for our subscribers! The Primer looks at the claimant's circumstances and is as few questions as possible tells the user if they'd be entitled to Pension Credit or not. It's been designed for speed so we still advise signposting for expert advice if the Primer says there's no entitlement to Pension Credit as there could be some complexity that the Primer hasn't accounted for. Subscribers can check out the Primer here - https://lnkd.in/dyw2SHvD

From our #equityresearch desk:- After nearly 20 years of New Pension scheme, the Centre recently introduced ‘Universal Pension Scheme’ (UPS). This would assure pension for ~2.3mn central government employees. Unlike most other expenditure, pensions are inelastic in nature, hence put further burden during periods of economic down cycles (see exhibit below). #UPS is a combination of old (50% of last-drawn salary is guaranteed) and new pension schemes (contribution from the employee and employer continues). Fiscally, the outcome is better than completely reverting to the old pension scheme. But, it will burden the exchequer. Our analysts, Sumit Shekhar and Eashaan Nair, believe that only if pension funds can generate 12-14% CAGR would returns in #NPS be similar to Old Pension Scheme (OPS). None of the central government NPS funds have delivered those returns. #Acumenatwork

It's at times like this I am proud to be a financial planner and to support my clients. Inherited Pensions Subject to IHT (taken from today's budget): Starting April 6, 2027, any unused pension funds and death benefits remaining in a pension at the time of death will be included in the deceased’s estate for IHT purposes. This change means that unspent pension pots, which were previously outside the IHT scope, may now contribute to the taxable estate. This policy revision aims to limit the use of pensions as inheritance vehicles, aligning with pre-2015 pension regulations. This will particularly impact estates with significant pension assets, where around 8% of estates are expected to be affected.

Understanding the legal framework of the UK pension system is crucial for both providers and individuals. Key regulations shape pension schemes, overseen by regulatory bodies like the Pension Regulator and Financial Conduct Authority. Legislation, such as the Pensions Act 2008, mandates automatic enrollment to address retirement savings gaps. Tax relief on contributions, introduced by the Finance Act 2004, incentivises saving. Challenges persist, including adequacy and sustainability concerns, requiring ongoing legislative review. Emerging trends like ESG considerations are shaping pension regulations, reflecting societal priorities. Navigating these regulations is essential for compliance, member protection, and retirement security. By grasping legislative roles, regulatory oversight, and legal considerations, stakeholders can effectively navigate the complexities of the pension landscape, fostering a more resilient retirement savings environment. #wealthmanagement #financialplanning #wealth #investment #wealthbuilding #financialfreedom #finance #retirementplanning #estateplanning #pension #pensionprotectionfund

Pensions are pointless, they are most likely haram, and you don't even really benefit from them. ❌ . . . These are some of the comments we often get when we ask people why they opted out of their employer pension. Let's break down what you could be missing out on. But before we do that, let’s paint a picture of what retirement might look like with just your state pension. 🎨👵👴 The current UK state pension age is 66 for both men and women. ⏳ It is set to rise to 67 between 2026 and 2028 and will increase further to 68 between 2044 and 2046. Current state pension amount: £220 a week. Which equates to £960 a month. 💷 If you think you can live on this sum, feel free to stop reading. Otherwise, here’s what you're missing by opting out of your workplace pension: #Employer Contributions: Your employer adds money to your pension, boosting your savings. 📈 You can't get this any other way, so every month you're not opted in, your employer keeps that money. 💼 Tax Relief: The #government adds extra through #tax relief on your contributions. 🏦 Long-Term Growth: Your pension grows over time with investments and compounding. 📊 Regarding point 3, many people worry that their pension might be invested in #haram places. 🛑 But all you need to do is contact your provider and ask to switch to a halal #equity fund—they should have at least one. ☪️📞 We’ll cover the drawbacks tomorrow, Insha'Allah! 😊 #pension #contributions #aviva #equityfunds #shariahcompliant

DID YOU KNOW: The value of lost pension pots in the UK has risen by 60% since 2018? New research suggests that over 3.3 million pension post are considered ‘lost,’ averaging £9,470 each. Don’t just be part of the statistic! Find out how you can be reunited with any lost pension savings here: https://lnkd.in/eHgdXvn9 #PensionAttention #PensionTracing

Saving into a pension is hard, but retiring without a pension is even harder 😒 If you’re planning on retiring on the state pension alone, it could be extremely difficult 😫 The state pension age is getting later and later And likely later again 🧓👴 There are lots of benefits of paying into a pension. Did you know:🤔 🔴 If you’re a business owner and don’t currently save into a pension, now could be a good time to consider your options and benefit from the available tax relief 🔴 If you make a personal contribution of £10,000 into a pension for example, you receive tax relief of £2,500 if you’re a basic rate taxpayer 🔴 If you’re a higher rate taxpayer, you could potentially claim another £2,500 in tax relief through self-assessment. 🔴 If you’re a Ltd Co, you won’t pay corporation tax on the pension contributions. Do you think your future self would thank you for saving into a pension? #PensionSavings #FinancialPlanning #MollamWealthManagement

The tax benefits of investing in a pension Investing in a pension offers significant tax benefits. As a result, pensions are attractive options for those planning for retirement and individuals looking to take advantage of these tax advantages. Here's a quick summary of the benefits: 1. Tax relief on contributions Your pension contributions receive tax relief at your highest income tax rate. 2. Tax-free growth Investments within your pension grow free from capital gains tax. 3. Tax-free lump sum When you reach a specific age, you can withdraw up to 25% of your pension pot tax-free. 4. Inheritance tax benefits Pensions are often exempt from inheritance tax, allowing you to pass on wealth efficiently. Interesting fact… According to Unbiased, at the end of 2023, UK workers had lost track of up to 1.6 million workplace pension pots. When was the last time you reviewed your current pensions? If you would like to seek the advice of an experienced pensions professional, connect with Ian Batterbee or Laura Bailey today.

What is #TripleLock? 🔒🔒🔒 The Triple Lock ensures the #StatePension rises by at least 2.5% annually, protecting pensioners from inflation. It benefits anyone in the UK receiving the State Pension, including those on the old system. Learn more 👇 https://lnkd.in/dEV26Am3

In our latest report, Oxford Economics and Royal London Pension - Adviser have collaborated to produce a study to drive the discussion around the approach to improving people’s #pension savings. Download our report to learn more: https://okt.to/t8z6YR