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Tuesday, 5 January 2016

For Those with Money in the UK Pension Schemes: 4 Things to look out for in 2016

There have been several announcements about the coming changes in the UK pension schemes. First modifications will take place first quarter of 2016 already. 

Here is the list of things investors should be aware of: 

Pension Taxation: Some changes are already on their way and some more are very likely to happen. On Budget Day, 16th March, 2016 there will be a review of pension tax that might lead to the abolition or reform of pension tax relief. It is important that you follow those in order to learn about possible abolition of pension tax relief and/or other measures that are meant to help investors facing pension exit penalties. 

New State Pension: On 6th April, 2016 the New State Pension will be launched. This will be a regular payment from the government that you can claim if you reach State Pension age on or after 6 April 2016. You would still be eligible to get a State Pension if you have other income such as a personal pension or a workplace pension. It is an attempt to simplify the state pension and to re-distribute pay-outs more equally. 

Auto-enrollment: By the end of 2016 over 500,000 employers will have gone through staging. It is estimated that the last three months of 2016 will see an estimated 156,000 employers hit their staging date. 

Low Cost Financial Advice: The joint Treasury/FCA advice and guidance review is expected to report in time for the Budget next March. This could free up access to low cost simple advice to help people plan their finances. 

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1 comment:

  1. The administration's wide point in the presentation of the new benefits controls in April 2006 is to improve the current annuity rules. retirement advice

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