If you ‘contracted out’ of the state pension between 1978 and 1997 you will no longer receive a statement from HM Revenue & Customs (HMRC) that lays out your entitlement.
According to the Financial Times, HM Revenue & Customs (HMRC) had been due to send a statement to members of private and public sector schemes detailing their ‘contracting out’ agreement by December 2018.
The paper says this will no longer happen following a decision by HMRC to do away with the statements to millions of taxpayers.
HMRC told the Financial Times that: “The change is being made because there have been developments in the provision of pension scheme information since we first started the changes to end contracting-out.”
Those who opted to ‘contract out’ paid less in National Insurance Contributions, meaning their entitlements would be reduced. Therefore, the decision to remove the statement may mean that some taxpayers are unaware of a reduced state pension.
HMRC has said that the ‘check your state pension’ service already includes full details of all national insurance contributions for each year, meaning that no one will lose out.
Despite these claims there are still many experts that fear that the Revenue is cutting corners to save costs, which may impact on those who are unaware or unable to use the ‘check your state pension’ service.
In today’s complicated marketplace, professional and impartial advice is paramount when it comes to finding the best solutions to meet your clients’ financial needs.
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 your clients can decide whether they wish to use our services before incurring any costs.
We will agree a fixed fee to provide a review of your clients’ current financial situation, so that our experienced and independent financial advisors can determine whether their financial arrangements are appropriate, and recommend areas that need improvement. Of course, our proposals will be comprehensively explained, so your clients can make informed decisions about any suggested changes.
All of our advisors are qualified to Chartered Financial Planner status, providing their high levels of technical knowledge and experience on a fixed cost basis.
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.