A Moore Thompson seminar focusing on major reforms of pension rules and other pension issues
The event, held on 15 April at Spalding’s South Holland Centre, attracted almost 100 delegates, who heard presentations on issues including the April 2015 personal pensions, pension-related tax issues and pension planning opportunities.
From April, people aged 55 with a defined contribution pension have new freedoms about the way they access their savings, with options including buying an annuity, taking the whole amount as a lump sum or leaving it invested and drawing an income from it.
Also from April, individuals who die with a defined contribution pension before the age of 75 can pass on their pension pot completely free of tax. Where the person dies aged 75 or older, any pension savings passed on will be taxed at the beneficiary’s marginal income tax rate.
Moore Thompson Mark Hildred said: “The fact that the seminar was so well attended highlights the interest there is in this issue. Delegates said they had really benefited from the information we gave them.”
Trevor Wilshire, who heads MT Financial Management, said pension savers should not make snap decisions about how access their funds.
He said: “The best option is likely to be wait and take the time to seek expert advice, from experienced financial professionals like the team at MT Financial Management, to help you make informed decisions.
“The new freedom to access potentially significant sums straightaway may appear tempting but the decisions someone makes now about how to take their pension will have long-term implications for their finances.
“Your financial security at a time when you are growing older, have reduced earning power and potentially suffering declining health is at stake, so it is crucial to make the right choices.”
For more information on issues around the pension freedoms, please contact us.