Financial advisers, fund managers, banks and other investment institutions are obliged to disclose all investment charges and fees before an individual commits to a pension transfer or portfolio agreement. If this actually happened, investors would be fully equipped to make an informed decision before it’s too late. Unfortunately, this isn’t always the case; many only […]
New Lifetime Allowance rules
Just when the pension sector felt it could move forward, it faced a set of new Lifetime Allowance rules. In the 2023 budget, the Chancellor announced the abolition of the Lifetime Allowance (LTA). The legislation was supposed to be effective immediately, but as royal ascent wouldn’t be completed until February 2024, the pensions industry had […]
Pension investment strategy
Investment markets have been volatile in the last few years. The financial aftereffects of COVID-19, the war in Ukraine, and the increase in energy prices and inflation have created uncertainty, and markets have suffered as a result. What impact does this have on your pension investment strategy? Traditional portfolio allocation theory says we should invest […]
Multi-jurisdiction divorce and pensions
Divorce can be a difficult process at the best of times. Even in relatively straightforward cases, it’s a long and expensive procedure. Lawyers don’t come cheap, and the incidental costs associated with at least one partner finding new accommodation and establishing a new life are unavoidable. This article deals with the complexities of multi-jurisdiction divorce […]
Pension transfer regulation
The UK government introduced new pension transfer regulation in November 2021 to combat pension scams. A traffic light flag system was created to help Trustees and administrators of pension schemes identify and reject transfers that might result in the policy owner being scammed. Individuals and the pension industry welcomed this. Not before time, some would […]
Pensions for digital nomads
Pensions for digital nomads are in demand. The Covid 19 pandemic changed the world of work permanently. Whilst many workers have been encouraged to return to the office, many businesses have realised the benefits of allowing employees to work from home. Technology has shrunk the globe. All that is required is a 4G connection, good […]
Abolition of the LTA in the UK Budget
No one expected the abolition of the LTA in the Budget. Rumours always abound within the industry the week before, but major structural changes rarely happen. The industry expected the limit to be restored to £1.8m, but the Chancellor went even further, with the abolition of the LTA completely. The rationale was to encourage highly […]
Solving the mobile employee pension conundrum
I recently talked with a Human Resources professional about providing mobile employee pension benefits for their overseas workers. It went a little like this. Caller – “Hi, I’m enquiring about an International Pension Plan for our non-UK employees. I suspect we’ll have a nice chat; then you’ll tell me it’s impossible!” Me – “I’m sure […]
Investment options
Not long ago, shareholders were limited to a narrow range of investment options. Employing a stockbroker was only open to the very wealthy; Unit Trusts were in their infancy and considered too risky for most, and With-Profit funds dominated the pension and endowment market. With-Profit funds were ok up to a point. However, they fell […]
Personal pensions and IHT
Countries worldwide are battling the financial consequences of Covid and the cost of living crisis. The UK is no different, with government resources struggling to provide services to the public. Into the fray stepped the Institute for Fiscal Studies (IFS), a leading independent economic research institute, with proposals for personal pensions and IHT (inheritance tax). […]
Best SIPP for EU residents
The best SIPP for EU residents is an International SIPP. Sometimes referred to as a ‘non-resident SIPP’, it can be a useful retirement planning tool for expatriates. Many of us live, work or retire in an EU country and have a long ‘to-do list’ that needs ticking off before we can settle into everyday life. […]
The truth about pension fees and charges
New disclosure regulations for investments into financial products have obliged providers to make major changes to how pension fees and charges are presented to investors. These rules apply to all investment funds, pension plans, and QROPS trustee fees. Not only must pension fees and charges be disclosed before an adviser can complete an application, but […]
Investment risk management
Investment risk management is an on-going exercise if we wish to meet our financial planning goals. As our personal situation changes, it’s important that we alter our investment portfolio to reflect new needs and requirements. While it’s relatively easy to assess risk at the point of investing, unforeseen events can force a rethink. The most […]
Pension scams and new QROPS rules
The UK government recently published a paper on regulations designed to combat pension transfer fraud, including new QROPS rules. Pension scams are the scourge of the professional financial services industry. Unfortunately, too many consumers have lost some or all of their funds to unscrupulous, so-called advisers. The idea behind the legislation is to stop scams […]
The UK Budget – Autumn 2021
The UK budget contained a mixture of giveaways and takeaways; its impact on the public depends on individual circumstances. One consistency with each Chancellor is that the budget is always presented as a positive initiative from a forward-thinking politician! Rishi Sunak followed the trend, basing his tax and spending decisions on “levelling up” and “a […]