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Retirement and pensions

The pensions landscape is ever-changing, but the need to plan for the future is not. We look here at the opportunities together with a summary of forthcoming changes to the annual allowance and lifetime limit.

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Pension changes
From 6 April 2014 there are changes to the annual pension allowance and also the lifetime limit.
Qualifying for a state pension
The Coalition Government has changed the age rules for qualification for the state pension. Currently the state pension age is between 60 and 65 for women and 65 for men. The changes mean that retirement age for women will be equalised with that for men at 65 by 2018 and both will increase to 66 from 2020, to 67 from 2034/36 and to 68 from 2044/46.
Planning for retirement
For many people their retirement plans have been devastated by the fall of the stock market in the first decade of the new millennium, reduction in property values and the fall in interest and annuity rates. Many may question what chance there is of a 'comfortable retirement'?
Pension premiums
There are limits that may be contributed to a registered pension scheme without incurring a tax charge. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600.
Pension contributions and tax relief
There are limits on how much can be invested in a pension scheme before a tax charge is payable.
Pension credit
Details of pension credits for the current year.
Stakeholder pensions
Stakeholder pension schemes are low-cost pensions meant for people without existing private pension arrangements. They were originally targeted at people who earn more than £10,000 a year and who cannot join an occupational pension scheme. They have, however, turned out to have much broader appeal.
State pension deferral
State pension deferral is the right to defer entitlement to the state pension. In return for deferring a lump sum accrues with interest added to the deferred entitlement at a rate normally of 2% over bank base rate. Therefore the deferral claim cannot accurately be evaluated in advance. Examples of the potential lump sum entitlement are shown in our tax rates.