Significant changes that will affect retirement savings
Chancellor Jeremy Hunt’s first proper Budget 2023, on Wednesday 15 March, brought some welcome but unexpected changes to pension tax. The changes are designed to alleviate the impact of strict pension rules, which are believed by Mr Hunt to have had a negative impact on the country’s labour market.
The amount you can contribute each year without incurring additional taxes
When making contributions to your pension, it’s important to keep in mind that there’s a limit to how much you can contribute each year without incurring additional taxes. This limit is known as the pension Annual Allowance.
Think ahead at least two years before you plan to stop working
Pensions may not be the most exciting thing to think about, but they are an essential part of planning for your long-term future. In fact, your pension has the potential to be one of your most valuable assets, even more than your property. It’s something that could make a significant difference to your lifestyle in later life.
Having trouble deciding between the two, there’s no need to choose just one?
Are you struggling to decide what to do with your pension pot? It’s an important decision that will impact your retirement for years to come. One option to consider is pension drawdown, which provides you with more freedom and flexibility in choosing your annual income. However, annuities offer a steady income and greater security.
Gap in pension benefits between men and women widens
For many women, the decision to work part-time often coincides with important career and childcare milestones. While pension contributions may not be the deciding factor for this decision, it’s important to understand the long-term impact on pensions. This knowledge is crucial for good financial planning.
Preparing for your future in a way that suits your needs
Retirement planning is not a one-size-fits-all system. Everyone has unique lifestyle choices, so it’s essential to prepare for your future in a way that suits your needs. Today’s savers face challenges like longer life expectancy and the shift from defined benefit pensions to defined contribution plans.
Failing to claim your pension means you could miss out on valuable retirement income
Keeping track of a pension can be a challenge, especially if you’ve had several schemes during your career or changed employers multiple times. Pension schemes can close, merge or be renamed over time, making it difficult to keep on top of them.
Keeping track of your retirement savings is not always easy
Are you worried about losing touch with your pension savings provider? Increasingly, with more people changing jobs multiple times before retirement, it can be easy to lose track of your hard-earned savings. By taking a few simple precautions, you can help ensure that your savings are always accessible and secure.
Are you nearing retirement age and wondering how to best manage your retirement income? Changes to regulations now provide you with greater flexibility and choice when it comes to accessing your defined contribution pension.
Make sure you have a comfortable and secure retirement for the years ahead
Retirement has evolved beyond the traditional image of stopping work completely at 60 for women and 65 for men. With many people choosing to work part-time or continue working later in life, it could be an opportunity to explore new interests or start your own business.
