Latest Blogs
-
James Jones-Tinsley: Aiming for an advice-guidance sweetspot
As Nikhil Rathi is reappointed as CEO of the Financial Conduct Authority (FCA) for another five years, the FCA has set out its strategic direction for 2025/26, with important implications for financial advisers.
-
Lisa Webster: Maximising protected tax-free cash
While 2024 ended with a lot of doom and gloom in the pension world following the big announcement on inheritance tax (IHT), there was some good news that may have slipped under the radar of some advisers.
-
Tilley: Is the age 75 trigger date now irrelevant?
Age 75 has been an important milestone in pension rules since A day in 2006. It was the latest age at which a compulsory annuity purchase was required (prior to Pensions Freedoms). It's arguably it’s long been an arbitrary line in the sand, noting that life expectancy has been on the increase for the last 20 years, but this trigger age has remained unchanged.
-
Lisa Webster: Overcomplicated rules are a threat
It may be more than a year since the Lifetime Allowance was formally abolished but issues are still emerging from the mess made by rushed legislation.
-
James Jones-Tinsley: Guided Retirement Duty could be game changer
During May, the Pensions Policy Institute (PPI), sponsored by The Pensions Regulator (TPR), concluded that defined contribution (DC) pension savers – including those in SIPPs, as well as in Workplace Pensions - require more guidance when choosing suitable retirement products.
Popular News
-
Workers in the dark about workplace pensions
Two in five, 43%, UK workers don’t know how much they are contributing to their workplace pension.
-
TPT launches DC decumulation product
Workplace pension provider TPT Retirement Solutions has launched a DC decumulation product, which it said has been designed to simplify retirement income planning for savers.
-
1.5m workers can't afford to save into a pension
More than 1.5m UK workers say they cannot afford to save into a pension.
-
Lisa Webster: To gift or not to gift?
Since the announcement that pensions are to be included in estates for inheritance tax (IHT) purposes the question of whether those with large pension pots should be giving some funds away has become increasingly common.
-
Pension transfer times rose during tax year end
Simpler pension transfers took an average of just 11 days to complete in the lead up to the end of the 2024/25 tax year.
Pension transfer values - as measured by the XPS Pensions Group Transfer Value Index - fluctuated “mildly” during June 2018 with a small fall during the month, says the firm.
The index was £234,000 at the end of May and £233,000 at the end of June.
The difference between maximum and minimum readings of the Transfer Value Index over June was £4,400 (or around 1.9%).
The index tracks the transfer value that would be provided by an example DB scheme to a member aged 64 who is currently entitled to a pension of £10,000 each year starting at age 65 (increasing each year in line with inflation).
XPS points out that different schemes calculate transfer values in different ways so a given individual may therefore receive a transfer value from their scheme that is “significantly different” from that quoted by the index.
Sankar Mahalingham, head of DB Growth, XPS Pensions Group, said: “Transfer values have been stable over the first half of 2018, during which the Index has fluctuated by only £8,300 (or around 3.6%).
“If we compare this to 2017, when in both halves of the year the index fluctuated by £14,000 (or around 6%), we can see that although transfer values remain close to historic highs in 2018, there has been a notable reduction in volatility.
“Given the recent UK political upheaval and its potential impact on the approach to Brexit, coupled with the changing global political climate (for instance in relation to possible escalation of trade wars), it remains to be seen whether this low volatility in markets and transfer values will continue over the coming months.”
XPS Pensions Group claims to be the largest pure pensions consultancy in the UK, specialising in pensions actuarial, investment consulting and administration, with revenues of over £110 million. The parent company is also a significant SIPP provider.
The company works with over 1,200 pension schemes, including 25 with over £1bn of assets, and undertakes pensions administration for over 600,000 scheme members.