Clarity coming to UK’s pension industry

Fund managers from across the UK’s pension industry will be forced to reveal any and all hidden costs associated with their pension schemes in the face of new legislation. These costs regularly wipe thousands of pounds off a worker’s pension, and The Times states the new Government rules will ensure defined contribution workplace scheme fund […]

FCA warns UK annuities market not working: But can they rectify the market?

Each year 420,000 annuities are sold in the UK, and now UK watchdog the Financial Conduct Authority (FCA) has pledged to shake up the GBP 14 billion-a-year market, after finding it “disorderly.” The news comes after an extensive review by the FCA which covered the 25 most popular annuities firms covering 98% of the market. […]

Clarity needed on QROPS income pre-55 years old

Since the 6th of April 2010, the normal minimum pension age in the UK has been 55 years old. However, in many other countries across the European Union (EU) and indeed the world, pension benefits can be taken as early as 50. This has caused some confusion in the QROPS industry over whether to follow […]

Waitrose’s ‘golden pension’ under fire

With its 3.1% rise in sales over the festive period, and its consequent cementing in the key Christmas trading period, you may have been thinking all is rosy at upmarket grocer Waitrose. Yet beneath the record sales is a record pension deficit currently totalling GBP 840 million. Revealed after an investigation in March 2013, the […]

QROPS and Fixed Protection: Protecting pension assets over GBP 1.25 million

If you own UK pension fund assets totalling over GBP 1.25 million, you currently have two months in which to protect your assets from the UK’s Lifetime Allowance (LTA). The LTA is the upper limit on any tax relief you can receive on your pension fund. Currently set at GBP 1.5 million, from the 6th […]

Rethinking the 4% retirement rule in America

Many experts in America believe the oft-cited “4% withdrawal rule” for retirement still holds up. The basic premise is that if pensioners withdraw 4.5% of their savings each year, their inflation-adjusted nest egg should remain for 30 years – the average time span used in retirement planning. Yet now, some experts are beginning to doubt […]

How the self-employed can save for retirement

According to the UK’s Office of National Statistics, there were approximately 4.25 million self-employed workers in October 2013. Whilst independence is one of the biggest advantages of being self-employed, it also causes problems, and not least with regards to saving for a pension. The state pension With a current worth of GBP 110.15 each week, […]

Illinois’ pension reform faces fresh problems

Late last year, Illinois governor Pat Quinn signed a bill overhauling the current process for how pensioners receive their funds. Before enacting this law, retirees would receive a yearly 3% increase to their stipends in line with inflation and the increased cost of living. These will be reduced come the 1st of June. However, many […]

Renting a home during retirement. A growing trend – or a growing problem?

Traditionally, paying off the mortgage before beginning retirement has been the aim of many individuals, in order to ease the draining burden of paying off a mortgage during the ‘golden years.’ Yet new analysis of ONS census data shows that one in every four of retired households across England and Wales currently pays rent for […]

How QROPS help British expats avoid the lifetime allowance limit

Chancellor George Osborne’s recent decision to reduce the Lifetime Allowance from GBP 1.5 million to GBP 1.25 million came as little surprise to the UK public. The second reduction in as many years means doctors, teachers, private sector managers and many other professionals across the UK who have either already built up a pension pot […]