As summer gets underway the warm weather may leave you daydreaming about the possibilities of retirement – longer days at a more relaxed pace, and more opportunities to spend time with family and friends. The current economic climate, however, has contributed to a more gradual retirement process and means those planning for and approaching retirement have much to consider.
Our feature for this edition of our newsletter drills into the changed pension allowance landscape, exploring the impact of the scrapped lifetime allowance and increased annual pension allowance. While constraints on contributions have been lifted for those at the higher end of the earnings spectrum, working out the best strategy for contributions isn’t straightforward for everyone.
The rise in inflation over the past 18 months has forced many to consider how they spend their money and meet financial commitments. For those nearing retirement, that will include how they take their pension. The security of an annuity will be appealing to many, but we explore creating the right balance of income sources to suit an increasingly phased process.
Our other stories include:
- Rising inheritance tax take – The inheritance tax (IHT) threshold has remained static for a decade and half while house prices have risen, creating a growing disconnect between this tax intended for the highest earners and the wealth of the people now left footing IHT bills.
- Capital gains rules relaxed for separations – The time pressure on divorcing couples to sell their homes to avoid a substantial tax bill has been lifted. Separating couples and civil partners now have three years to decide what to do with a previously shared home and how to split reliefs.
- Your self-employment checklist – There are 4.4 million self-employed workers in the UK enjoying the freedoms of being their own boss, but alongside that are responsibilities that generally sit with an employer and HR department. We look at four key planning areas for those moving into self-employment.
We will share the next phase of developments with you in September. Please do get in touch if we can continue to help or provide you with more information on any of the topics covered.