Pension legislation dramatically changed back in 2015. Gone are the days where your pension savings automatically die with you or your spouse/civil partner.
There are so many things to consider, with, home and support naturally the first you would focus on. In fact, when you begin the process of separating a shared life the sheer number of things to deal with can seem overwhelming, and related to this is, the cost of divorce can have a lasting impact on your plans for later life.
Many younger people now rely on the bank of Mum and Dad to help get them on the housing ladder. As well as being a useful source of funds, they may also have some important life lessons to impart when it comes to saving towards a more secure financial future.
Financial Planning Consultant, Marcus Dodds, looks at the consequences of making early pension withdrawals during these unsettled and challenging times.
What is intergenerational financial planning and what does it really mean to a bereaved family on the death of a loved one? We look at the importance of discussions about pension death benefits and in particular the accurate completion of nomination forms. .
The annual allowance is an important number in the pension world. It sets the maximum tax-efficient amount of total contributions in a tax year – from any source – that can be made to pension schemes for your benefit. If the allowance is exceeded, then any tax relief you receive on the excess is effectively clawed back by the annual allowance charge.
Tax payers have paid £600m more in Inheritance Tax (IHT) than a year ago. The latest figures from HMRC show that between April and October this year, IHT receipts totalled £3.6bn compared with £3bn in the same period in 2020 – a rise of 20%.
So does this indicate that many families are not aware until it is too late?