PENSIONS
If only Victor Meldrew had planned his retirement income before he became a grumpy old man, with one foot in the grave! By Julie Sebastianelli, Wealth Management Director at Mattioli Woods
I DON’T BELIEVE IT! When you have spent a lifetime dreaming of enjoying your retirement, safe in the knowledge you have enough put aside in your pension, the last thing you want is to be hit with an unexpected tax charge as you turn age 75. Never rest on your laurels; changes happen and sleepwalking through them might cost you dear.
Never rest on your laurels; ❛❛ changes happen and sleepwalking
through them might cost you dear ❜❜ 26
In 2015, new pension ‘freedom rules’ provided greater flexibility in terms of payment and accessibility. At the same time, there was a widening of the scope of beneficiaries to whom the passing of undrawn funds could be made free of inheritance tax (IHT). The favourable IHT position pensions enjoy has seen an increase in clients using their personal wealth to fund their lifestyle, and to reduce their taxable estate on death. In this scenario, clients prefer to view their personal pension pots as ‘next generation’ monies.
