Successive cuts to the Lifetime Allowance (LTA) and a freeze means that more people than ever could face an unexpected tax bill when they access their pension. The LTA is the total amount a person can build up in pension benefits without incurring tax charges. Since it was introduced in the 2006/07 tax year, there have been several cuts to the allowance, and it’s now frozen until 2026. As a result, more people are being affected by the LTA...

The age you can access defined contribution (DC) pensions is rising. Research suggests that many people are unaware of this, but it could affect your retirement plans. At the moment, you can access money saved into a DC pension scheme from the age of 55. However, from 2028, this will rise to 57. If you’d hoped to access your pension at 55, whether you plan to retire then or not, the additional two years may mean you need to rethink your...

When saving into a pension, reaching £1 million can seem like an impossible challenge. But the magic of compounding can mean it’s easier to reach than you might think, especially if you start saving while young. Compounding means that the returns earned from investments are reinvested. This means they go on to generate returns of their own. Over time, this can help savings to grow faster. As pensions are usually invested for decades,...

Have you ever been targeted by a scam? Fraudsters are becoming more sophisticated, and their scams can be hard to spot. This Scam Awareness Month, learning how to protect your pension could safeguard your retirement plans. According to Action Fraud, in the first three months of 2021, fraudsters took £1.8 million from pensions. Victims have made 107 reports of pension scams during this period. However, this may just be the tip of the iceberg. Some...

There’s often a lot of talk about the State Pension Age rising and the impact it could have on retirement plans. But, in certain circumstances, delaying your State Pension payments could pay off. The State Pension Age is currently 65, but is gradually increasing and will reach 67 by 2028. You can use the government’s State Pension Age checker to see when you’ll be able to claim the State Pension. Remember, the State Pension Age is under...

We all hope to achieve financial security in retirement, allowing us to focus on the things we enjoy. While retirement might be associated with indulging hobbies and aspirations, Generation X (born between the mid-1960s and early 1980s) need to plan ahead if they’re to enjoy the same level of security as their parents. For Generation X, retirement is drawing nearer, but there is still time to review plans and take steps that could lead to a more...

When you think of risks to your retirement, do you include inflation? It can have a huge impact on your income throughout retirement. Yet, it’s often overlooked when creating a retirement plan. Inflation refers to the rising cost of living. Day-to-day, it’s not something that you notice. However, over a longer timeframe, such as your retirement, the price of goods and services creeping up has an impact. It can mean your income and assets...

Do you know who your current pension provider is? If so, do you know why you chose them? Even when you’re making regular pension contributions, these may not be things you think about that often. While, in many cases, your employer simply chooses your pension provider and you stick with them, you may want to consider switching. Over time, your pension is likely to become one of your largest assets and key to your long-term plans. A regular...