Increasing pension contributions by using unused annual allowances From 6 April 2011 the annual allowance for pension contributions reduced from £255,000 to £50,000. While this restricts the levels of contributions you can make without attracting an Annual Allowance charge, on the plus side the Government has brought back the Carry Forward rules. Increasing pension contributions… Continue reading Carry Forward rules
Category: Financial News
A-Z of retirement planning
Understanding the jargon Accrual Rate The factor used to calculate benefits in a defined benefit scheme. For example, a scheme with an accrual rate of 1/60th will provide 1/60th of pensionable salary for each year of pensionable service. Active Member An occupational pension scheme member who is earning new defined benefit scheme benefits or paying defined contribution… Continue reading A-Z of retirement planning
Inflationary Pressures
Counteracting the pensioner’s worst enemy Inflation is a pensioner’s worst enemy. Over time, it will reduce the value of your income unless you take measures to counteract it. With retirement often stretching to twenty to thirty years, your income should keep pace with inflation. The State Pension and most final salary schemes will usually build in an annual increase.… Continue reading Inflationary Pressures
Budget 2011
Who can expect to be ‘better’ off following George Osborne’s Budget speech? First-time buyers First time buyers are to receive aid from the Government to the value of £250m. Under a scheme called Firstbuy Direct, 10,000 individuals will be helped to get on the housing ladder, filling the gap in the market left by Labour’s… Continue reading Budget 2011
Absolute return funds
Steadier results through a combination of strategies In the current investment climate, absolute return funds could offer the ordinary investor access to a range of more sophisticated investment techniques previously only available to the very wealthy. These products, which have only become generally available in more recent years, aim to provide a positive return annually… Continue reading Absolute return funds
EIS and VCT funding
Encouragement to help small companies raise finance There was also encouragement to help small companies raise finance, with the Chancellor proposing a significant increase to the venture capital tax reliefs, by increasing the tax relief available, and raising some of the size limits for qualifying companies. The increase in the maximum amount an individual can… Continue reading EIS and VCT funding
Low carbon policies
Putting low carbon development at the heart of the Chancellor’s strategy for renewed growth Fuel duty The planned rise in fuel duty, expected to add 5p to a litre of petrol from 6th April 2011, was postponed and instead the Chancellor announced a 1p reduction. Individuals and small businesses will find this helpful although it… Continue reading Low carbon policies
State pension age
Helping Britain live within her means Employees could see their retirement pushed back at least 12 months every two years after the Chancellor, George Osborne announced plans to link the pension age to rising longevity. The Chancellor announced a mechanism to raise the state retirement age automatically in line with life expectancy. The pension age is already due to increase… Continue reading State pension age
National Savings & Investments
Reintroduction of index-linked savings certificates pegged to the retail prices index National Savings & Investments (NS&I) is to relaunch index-linked savings certificates pegged to the retail prices index (RPI). NS&I withdrew the certificates last July after they became over subscribed. Currently they are only open to clients who have certificates that are maturing. Returns will continue to be… Continue reading National Savings & Investments
Buy-to-let
Solving Britain’s housing shortage The UK is set for the return and major expansion of buy-to-let in the housing market after plans were unveiled for tax cuts on bulk purchases of residential properties. The Coalition has identified buy-to-let as a way of solving Britain’s housing shortage and wants to attract investment into residential property by major institutions, such… Continue reading Buy-to-let
