Pensions will be a key battleground in the run-up to the General Election. Last week's televised debate certainly made that clear.
Without a published Labour manifesto, Labour's plans on pensions are still largely a mystery. But past statements from members of the party's shadow cabinet indicate that many concerns surrounding pension policy could be justified. We look at what changes Labour could make and the steps you can take today to shield your retirement nest egg against a looming assault.
Other ways Labour could raid nest eggsThe amount you can pay into your pension each year could be slashed. Currently, you can pay in up to £60,000 a year and receive tax relief. This is known as your 'annual allowance'.Tim Blowers, a chartered financial planner at financial adviser Old Mill, says it is 'widely speculated' that Labour might reduce this allowance.
Freedom of access may be limitedIn 2015, the Tories brought in sweeping changes to how you can access your pension. Unlike other investment accounts, any money saved in pensions is currently not counted as part of your estate, and if you die before the age of 75 your descendants don't pay tax on the money.
This means that if the amount you can pay in each year is slashed, you will have been able to make a larger contribution beforehand. Read More What will YOUR budget be in old age? Only 39% of us have saved enough for 'moderate' retirement, study finds Daniel Hough, financial planner at wealth manager RBC Brewin Dolphin, says that in some cases it may be sensible to take money out of your pension before any Labour lifetime allowance comes into force, so that your pension isn't tested against any reinstated allowance later.
These allow savers who are close to, or have hit the limit, to apply for an exemption, and retain the higher limit. Similar protections could be introduced but there is no guarantee. This may be the case if you are several years off retirement and close to breaching the previous threshold, as it will lessen the likelihood you will hit it later.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: i newspaper - 🏆 8. / 89 Read more »
Source: i newspaper - 🏆 8. / 89 Read more »
Source: HuffPostUK - 🏆 108. / 51 Read more »
John Swinney urges Keir Starmer to work with him to end child povertyTHE First Minister has urged Sir Keir Starmer to work with him to eradicate child poverty by changing course on a range of policies.
Source: SunScotNational - 🏆 49. / 63 Read more »
Source: i newspaper - 🏆 8. / 89 Read more »
Keir Starmer meets Jim Ratcliffe for Old Trafford redevelopment talksStarmer attended United’s clash with Arsenal as a guest of Mayor of Greater Manchester Andy Burnham.
Source: Glasgow_Times - 🏆 76. / 59 Read more »