![]() “They may have done so because they lost their job or needed extra funds to tide them over during the pandemic or the current cost of living crisis. Many individuals over 55 who have taken income ‘flexibly’ from their money purchase pension may not have realised that by doing so, they reduce the maximum they can then save in a pension. Martin Lewis Pension Drawdown guidance helps people get the most from their pension while considering tax-efficient withdrawal. “The Money Purchase Annual Allowance is increasing from £4,000 to £10,000. 'This is about the new state pension that was introduced on 6 April 2016. If youre aged 45 to 70, you need to check ASAP if you can boost your state pension now. ![]() Martin: 'So let me take you through this because its not that simple. He said: “But while not mentioned in his Speech, the change which will benefit the greatest number of individuals is the increase in the little known Money Purchase Annual Allowance which will support a greater number of over 55s staying in or returning to the workplace. Our pension drawdown calculator allows you to see how long your pension pot might last. Heres a full transcript of Martins tips on boosting your state pension. Annuity The type of annuity you purchase will determine whether it continues to pay out after you die. Scrapping the lifetime allowance coupled with increasing the annual allowance by 50 percent to £60,000 will be particularly beneficial to higher earners. Inheritance Drawdown Should you die before age 75, any beneficiaries you nominate can inherit whatever money’s left in your pension drawdown without having to pay tax. Steven Cameron, pensions director at Aegon commented on the increase of the MPAA explaining that the Chancellor’s bumper pack of pension tax relaxations will come as a welcome boost to many individuals. ![]()
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