Newspaper article The Journal (Newcastle, England)

YOUR MONEY; Your Money Queries Are Answered by Trevor Clark, Director of Rutherford Wilkinson Ltd, Chartered Financial Planners

Newspaper article The Journal (Newcastle, England)

YOUR MONEY; Your Money Queries Are Answered by Trevor Clark, Director of Rutherford Wilkinson Ltd, Chartered Financial Planners

Article excerpt

Q. I recently completed my self assessment tax return, with the assistance of my accountant. He advised me that I need to seek advice regarding my retirement planning, as the rules regarding the taxation of pensions are set to change. Can you tell me what these changes are? A. From April 6, 2014, both the Lifetime Allowance and the Annual Allowance (the maximum amount a person can save into a registered pension scheme in any given year) are set to reduce.

The Lifetime Allowance, which as recently as April 2012 was PS1.8m, is set to be reduced from PS1.5m to PS1.25m. Similarly, the Annual Allowance, which was PS255,000 until 6 April 2011, will be reduced from its current level of PS50,000 to PS40,000.

A surprising number of people are likely to be affected by the changes. As well as impacting high earners who are able to make significant contributions to a defined contribution pension, they will impact also modest earners who remain members of a defined benefit pension scheme. For example, a number of mid-level local government employees, NHS staff and university lecturers, among others, are likely to be affected by the changes, as well as those higher rate tax payers who are members of a private sector final salary scheme.

However, if you may be affected by the forthcoming reductions there are measures that you can take in order to avoid a punitive tax charge and to maximise your retirement planning opportunities. If you think that you may be affected by the forthcoming changes, I recommend that you to seek assistance from a chartered financial planner.

Q. I read an article that said the Bank of England will raise interest rates once the unemployment rate falls to 7%. With the recent reduction to the unemployment rate, I am concerned that interest rates are likely to increase in the short-term. Do you think such a rise in interest rates is likely? A. It is almost impossible to say with any certainty when the Bank of England will raise interest rates, which have remained at a historic low for almost five years now. However, it is not accurate to say that interest rates will rise once unemployment reaches 7%. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.