Withdrawals of Pension Pots Drops Down 42%

According to the data from the Financial Conduct Authority (FCA), the total number of customers that took all their pension pot as cash fell 42% during the last quarter of 2015. The Financial Conduct Authority recognized the general fall in access to pensions after a sharp fall following the pension freedoms. The number of individuals who preferred a full withdrawal …

Retirement ProfessionalsWithdrawals of Pension Pots Drops Down 42%

New tax year, new changes for pensions in 2016-2017

The new tax year for 2016-2017 starts today (April 6th) which means new changes, so here is what you need to know. THE NEW STATE PENSION The new ‘single-tier’ state pension starts today which means anyone who reaches pension age from April 6th will get the full flat rate payout of £155.65 per week. This will only apply if you …

Retirement ProfessionalsNew tax year, new changes for pensions in 2016-2017

Chancellor under pressure to scrap 25% tax free lump sum

Chancellor George Osborne is facing increasing pressure to scrap the 25% tax-free lump sum people can take out of the pension pots ahead of next month’s Budget. Currently people can access 25% of their pension pots tax-free in a single lump sum when they reach 55. Think tank the Institute of Economic Affairs recently proposed the tax-free lump sum should …

Retirement ProfessionalsChancellor under pressure to scrap 25% tax free lump sum

Retirees move back to annuities following market volatility

Consumers have been gradually shifting back to annuities for a guaranteed income since the pension freedoms were introduced in April 2015, according to new data. Figures from eValue’s quarterly pension freedoms index covering over 17,000 people showed that in October preference for guaranteed income rose to 47%, up from 33% in April. Meanwhile preference for flexible income (i.e drawdown) dropped …

Retirement ProfessionalsRetirees move back to annuities following market volatility

Second-hand annuities – Pro’s and Con’s

The government has stated that from 2017 pensioners will be able to sell their annuities for a lump sum. This would extend pension freedoms to those who’ve already bought a guaranteed income. But can it really work? We wonder… When pension freedom arrived in April 2015, many people missed out. Those who had already bought a guaranteed income no longer …

Retirement ProfessionalsSecond-hand annuities – Pro’s and Con’s

Basic state pension to rise to £119 per week

Autumn Statement boost for pensioners In Wednesday’s Autumn Statement, the Chancellor will announce the basic state pension will increase to £119.30 a week from April 2016. The BBC reported the basic state pension will get its biggest rise since 2001. The increase equates to 2.9% and will be worth £174.20 extra a year to someone on a full basic state …

Retirement ProfessionalsBasic state pension to rise to £119 per week