New research has suggested that 10 per cent more people are likely to seek a guaranteed income – such as an annuity – than they were in the immediate aftermath of the introduction of pension freedoms in April this year. The latest index from financial forecasters eValue has revealed that 43 per cent are now exploring a guaranteed income post-retirement, …
Changes to Insurance Premium Tax (IPT)
Date of change: 1st November 2015 On 8th July 2015, George Osborne, Chancellor of the Exchequer, delivered his Summer Budget 2015 to Parliament. One of the most controversial and unexpected features of the Budget was an increase to IPT. Considered a necessity by the Government but a surprise ‘stealth’ tax by industry insiders, the IPT increase has been met with …
Lifetime allowance tax take quadruples
Lifetime allowance tax take quadruples in six years According to figures obtained by Suffolk Life (from a freedom of information request), Tax revenues from breaches of the lifetime allowance on pension contributions have quadrupled in the last six years. HMRC took £94,200,000 between 2014-2015 as a result of contributions to pots in excess of the allowance, slightly down from the previous year …
Enhanced Annuity providers to merge
Specialist annuity providers Just Retirement and Partnership are planning a £1.7bn merger. The Enhanced Annuity providers are to merge and become the JRP Group, it has been announced today. The companies would raise £150m in equity even though they anticipate annual savings of £40m at a one-off cost of £60m. Both are comfortably capitalised on paper. But meeting the EU’s …
Calls for crackdown on drawdown charges
Calls for crackdown on drawdown charges Which? the consumer group wants the Financial Conduct Authority (FCA) and Government to intervene in the drawdown market to ensure people are not confused by the wide range of charging options. Which? research has revealed huge differences in what pension providers are charging people looking to benefit from the new pension freedoms. Big differences …
Summer Budget 2015 Summary
Pensions Lifetime allowance The lifetime allowance reduction announced in the March 2015 Budget will go ahead. So, there will be a drop from £1.25m to £1m from 6 April 2016. The Summer Budget Statement confirms that there will be new fund protection options introduced to allow those with funds in excess of this limit to protect the greater amount held. There …