The time when an elderly person needs to go into residential care is often a huge strain on family members. Illness or infirmity may have forced a sudden change in circumstances and time may be short.
Findings from a study published in September by Aviva, in conjunction with accountants Deloitte, are a wake-up call for individuals and governments across Europe. The study concluded that the UK has the largest pensions gap per person in the whole of Europe and UK adults now need to save an average of £10,300 every year to catch up. Europe’s annual pensions gap now stands at £1.6 trillion.
The cost of tax relief on pension contributions doubled under the previous government to an annual cost of around £19bn by 2008/09. The government confirmed in the Coalition Budget that it is committed to reform of pensions tax relief and would continue with plans that it inherited to raise revenues from restricting pensions tax relief from April 2011.
Q: Why is the government planning to end the default fixed retirement age?
A: Many people are not saving enough for retirement and risk not having the income they would hope for if they retire at the ‘traditional’ age of 65.
These are some of the most commonly asked questions we receive from clients.
If you suffer from certain medical conditions, or if you smoke, an impaired-life or enhanced annuity could significantly increase your income in retirement.
The Chancellor of the Exchequer, George Osborne, announced during the Coalition Budget 2010 the removal of the obligation to purchase an annuity by age 75. Currently, the government is consulting on the proposed changes and further details will follow after a period. This announcement offers individuals the choice over what they do with their lifetime savings rather than having to purchase an annuity at the age of 75.
Every business has key people who are driving it forward. Many businesses recognise the need to insure their company property, equipment and fixed assets. However, they continually overlook their most important assets, the people who drive the business – a key employee, director or shareholder.
A trust arrangement can ensure that your wealth is properly managed and distributed after your death, so that it provides for the people who depend on you and is enjoyed by your heirs in the way you intend. There still remain significant planning opportunities, even though changes announced in the 2006 Budget in relation to the Inheritance Tax treatment of trusts will have a bearing on the use of trusts in the future.
In order to protect family and loved ones, it is essential to have provisions in place after you’re gone. The easiest way to prevent unnecessary tax payments such as Inheritance Tax is to organise your tax affairs by obtaining professional advice and having a valid will in place to ensure that your legacy does not involve just leaving a large Inheritance Tax bill for your loved ones.