Most retirees are aware of the Lifetime Allowance – a limit on the total amount of money that can be saved in pension schemes before incurring a tax charge. However, many people are unsure of how it works or what they need to do to stay below the allowable limit. In this article, we will provide an overview of the Lifetime Allowance and explain how you can protect yourself from exceeding it.
Many people may be asking themselves right now: How can I protect my money from inflation? As the cost of living continues to rise, this becomes a significant concern for those with savings and investments as they see their hard-earned cash becoming worth less over time.
A flurry of activity in the DB pension transfer market has seen record high transfer values. Advisors and investors alike are watching carefully to see if this is a sign of things to come, or if recent concerns over red flags in the market will have an impact on transfers. Defined benefit pension transfer values reached a new high, but they’re still shorter than what was seen last year.
As more people become aware of the impact their money can have on companies and supply chains, they’re increasingly interested in investing in companies that align with their values.
When it comes to saving for retirement, Brits aged 35-54 are caught between a rock and hard place. They’re too young to have benefitted from defined benefit pensions, but may be enrolled into auto-enrolment, which usually happens mid-career.
This has led them into what’s called “the squeezed generation” when it comes to how much they have managed to put aside for when they retire.
With nearly half of UK workers unaware that their occupational pension will provide them with an income in retirement, now is the time for everyone to plan better.
The main reasons for transferring a money purchase or defined contribution pension are as follows:
• Drawdown Options
• Currency
• Investment Selection
Other reasons can include:
• Receiving advice throughout retirement
• Consolidation of all pension ports