Don’t be fooled out of a comfortable retirement
On 6th April the Finance Act 2015 takes effect. It brings in legislation which may have a material impact on the pension plans of the nation’s highest earners, directors and senior management. Equally, it also poses a threat to the final pension value for some middle-income earners.
Looked at alone, each of April’s new laws will have far-reaching effects. Taken together, they could have an adverse impact on peoples’ long-term financial futures in the form of:
a £137,500 (1) tax liability if an individual, or their employer, make a single contribution into the pension in question after the 5th April, (this is because the pension could already be ‘full up’ under the new rules);
an unforeseen tax bill of up to £13,500(2) for the coming financial year alone; and
funding restrictions that could leave individuals up to £1million (3) worse off at retirement.
Secondsight, part of Foster Denovo Limited, has launched two e-books, to guide individuals and employers through the impact the changes to the tapered annual allowance and the reduction of the lifetime allowance may have.
Read the article as featured on BDaily in full.