Page 1 - Pension Works_Autumn_2017_Newsletter

Pension Works Limited,
Booths Park 5, Chelford Road, Knutsford,
Cheshire WA16 8GS

0800 756 1288
Email: info@pensionworks.co.uk
Web: www.pensionworks.co.uk
Pension Works is authorised and regulated by Financial
Conduct Authority (FCA) number 739922

YOUR WINDOW ON
AUTUMN EDITION 2017 FINANCIAL MATTERS

INSIDE THIS ISSUE

Winter is coming – what lies ahead?
Inheritance tax: the government
rakes in £5bn
Retired households hand over
£7,400 to the taxman
Will your pension go to the wrong person?

How much will you spend in retirement?

MILLIONS OF WOMEN WILL BE POORER TREASURY CONFIRMS LIFETIME

DUE TO STATE PENSION CHANGES ALLOWANCE WILL GO UP IN

LINE WITH INFLATION
ore than a million women as life expectancy increases. A spokesman
Mare now worse off by an for the Department for Work and Pensions In his 2015 Budget, the then Chancellor
said: “Women retiring today can still expect
average of £32 a week because to receive the state pension for over 24.5 George Osborne announced that the
Lifetime Allowance (LTA) for pension
of changes to the state pension, years on average – which is more than any contributions would be reduced from
according to recent research by generation before them, and several years £1.25m to £1m from April 2016. It was
the Institute for Fiscal Studies . longer than men. By 2030, more than three also announced that the LTA would be
1
million women stand to gain an average indexed by inflation from April 2018.
It found that the phased increase in the state of £550 per year as a result of the new
pension age for women was saving the state pension.” As there had been a change of government
in the meantime, there was doubt in some
government billions, but having a marked Around seven million people in their late 30s quarters as to whether the Treasury would
effect on household incomes. Many of the and 40s are likely to be affected by planned implement this change. However, it has now
affected women are worse off each week by further rises in pension age, to 66, 67 and been confirmed that the allowance will rise
the full amount of their previously forecast eventually 68, affecting men and women, so in line with inflation from April 2018.
state pension. it’s particularly important that younger workers

Due to the changes, many more women have are aware of this and plan accordingly. The Treasury spokeswoman also confirmed
that the increase will be based on the
stayed in work. However, the report concludes A huge number of people in the UK rely on increase in the Consumer Price Index in the
that the extra wages have only partially offset the state pension to underpin their retirement year to the previous September, and where
the potential pension income they would income. So, if the change in pension age this is not a multiple of £100, it will be
have received. In other words, many women is likely to affect your finances, then getting rounded to the next £100.
are working when they weren’t expecting some good advice as early as possible in
to be and are still worse off than if they had your working life will help you get a full So, although the increase is unlikely to
received the state pension to which they were picture of the amount you will have to live on be huge, it will bring some relief to those
told they would be entitled – until the changes when you retire. who are currently on the threshold of
were initiated at relatively short notice a exceeding their LTA. If you’d like advice on
few years ago. This situation prompted the Keeping an eye on your pension planning any aspect of your pension and retirement
planning, then do get in touch.
creation of the campaign group Women throughout your working life can help
Against State Pension Inequality (WASPI). ensure you have a financially-comfortable Tax treatment depends on the
retirement. If you’d like some advice, get individual circumstances of each
The government increased the state pension in touch. client and may be subject to change
age in response to the challenge the public in the future.
finances face in paying pensions for longer 1 Institute of Fiscal Studies, Aug 2017
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide
to future performance and past performance may not necessarily be repeated.