Only a quarter of Britons are pension-savvy, according to a new report

New research has showed that some of Britain’s over 50s are holding back on withdrawals to pass on their pension tax-efficiently, but many are missing out.

The latest figures show one in four over 50s with a private, defined contribution scheme and flexible drawdown, are planning to leave aroudn 45 per cent of their pension behind – equating to roughly £51,000 per pension in the UK.

Under the new pension freedoms act, introduced in 2015, any savings left through pension schemes can be now passed down ‘tax-efficiently’.

The new rules state that heirs can inherit pensions tax-free if the benefactor dies before the age of 75.

They are only taxed at their personal income tax rate if the benefactor dies after the age of 75.

Despite the results, many of the people surveyed were still unsure of the rules surrounding Inheritance Tax.

MT Financial Management is a firm of Chartered Financial Planners that provides independent and unbiased financial planning, investment portfolio management, pension review and trust review services to the clients of Moore Thompson Chartered Accountants and selected professional introducers.

We offer an initial meeting at our cost and with no obligation, so that you can decide whether you wish to use our services before incurring any costs.

We will agree a fixed fee to provide a review of your financial situation, so that our experienced and independent financial advisors can determine whether your financial arrangements are appropriate, and recommend areas that need improvement. Of course, our proposals will be comprehensively explained, so you can make informed decisions about any suggested changes.

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As our fees are agreed in advance, we are not tied to promoting particular solutions and can focus on providing the best professional advice.

To find out more about our services, please contact Trevor Wilshire on 01775 717220 or visit www.mtfinman.co.uk.

Posted in ARA News.