As with all past government financial plans, and those to come will be no different, the annual budget often brings news of joy and woe! We understand it’s no easy task to lead the country out of recession and boost our economy but please once, just once, George can you throw us some slack?!
Whether or not you follow the political landscape the annual budget can often cast an air of slight trepidation. Fortunately we’ve cast our beady eyes over the plans and come up with a simple summary for the key implications you need to be aware of when it comes to your pension.
Fortunate enough to earn six figures?
First off, for high earners with a salary and pension contributions of over £150,000, your maximum pension contribution annual allowance of £40,000 will now be reduced by £1.00 for every £2.00 of income to a maximum of £10,000.
Double your pot while you can!
Secondly, the pension input periods are now being aligned with the tax year. This brings with it an opportunity to place a further substantial amount into your pension pot in addition to anything you paid before the budget on July 7th. Great news for those savers among us!
You may need to shift some saving that was earmarked for your pension
Thirdly, there will be a reduction in the lifetime allowance of your pension from £1.25m to £1m in 2016/17. This means that the maximum amount you will be allowed to hold within your pension fund is £1m, although there will be an opportunity to protect pension savings affect you please let us know.
Pensions can be extremely complex and we are here to take the headache away from the changes in legislation and to ensure you are still able to maximise your allowances within the legal constraints applied.
You are now able to transfer child trust funds into Junior ISA’s from April this year. If you would like further information about the opportunities for investment, please contact us.
Contact us today for an informal chat and we’d be more than happy to set some time aside for a full review of your options.
Call: 01782 557800