We are often asked whether a pension transfer is best to a QROPS or SIPP. The answer is ‘it depends’. We understand that everyone’s circumstances are unique, and no ‘one size fits all’ solution exists. However, some indicators help you make the correct choice. The basic product structures are very similar, although non-resident SIPP plans […]
Pensions review on the way
The newly elected Labour Government promised a pensions review as part of its manifesto. While the current system works reasonably well, there are areas that need attention. I trust that Rachel Reeves will not only focus on increasing tax revenue, although I understand that this will be part of the overall study. There are urgent […]
Investment charges
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 […]
Updating your pension plan
Andy Warhol once said, “They always say time changes things, but you have to change them yourself.”. We are pretty good at this. We regularly change our mobile phones, clothing style, cars, houses and almost everything we own. We do this to renew and refresh our belongings and ensure we’re up-to-date with modern trends and […]
Retirement planning: new year, new country?
Christmas is often a time for reflection. How was the past year? What will the new one be like? For some, it’s a focus on retirement planning and a move abroad. Since Brexit, UK emigrees to EU States are now considered 3rd country nationals. In other words, in the same way as anyone who doesn’t […]
Autumn Statement 2023
The UK Chancellor makes his annual Autumn Statement every year. The purpose is to update progress from the main event, the Spring Budget. Initially, it was a relatively mundane affair where few important new policies were announced. Over the years, the Autumn Statement has morphed into a mini-Budget as more new laws and government policy […]
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 […]
QROPS transfers guidance
The financial industry welcomed the Pensions Regulator’s guidance notes on QROPS transfers. New rules designed to prevent scams were sorely needed as we have seen so many people’s pension pots decimated by criminal behaviour and poor adviser practises. However, pension providers often interpret the recently introduced red flag system incorrectly. This is unsurprising as insurance […]
UK pension options for US citizens
People who now live in the USA and built up private or company pensions whilst working in the UK often face several challenges when accessing information, obtaining advice and transferring their plan to something more appropriate to their residency status. So, what UK pension options are available to ‘US-connected’ citizens, and can better outcomes be […]
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 […]
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 […]
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). […]