fbpx
Foster Denovo|News & opinion|News|Unintended consequences’ of pension changes

Unintended consequences’ of pension changes

Employers and employees need to be made aware of the full consequences of tapering and lifetime allowance changes, warns Darren Laverty, Partner at Secondsight.

From 6 April 2016, the annual allowance will be tapered from £40,000 for those with earnings of £150,000 or more down to £10,000 for those with income of £210,000 or more.

Another major change is the reduction of the lifetime allowance from £1.25m to £1m. After April 2016, anyone who breaks through the £1m threshold may be liable to 55% tax on any amount over the limit if the excess is taken as a lump sum.

An unintended consequence is that most ‘death in service’ benefits paid out will count toward the £1m – a factor which could leave a bereaved family with less than half of any expected pay out, once the tax is taken.

So what should companies and individuals do to mitigate these risks and protect themselves?

Read the article featured in Professional Paraplanner in full, here.

prev
next
Find me an adviser
Start your search
Register

Keep up to date with our latest news

Newsletter sign up

 
 
 
Read our privacy policy, by clicking here.
 
captcha
 
From time to time, we would like to contact you about news, events and other ways we think we can help you. You can unsubscribe from this at any time using the link within your email or by writing to us. Details can be found within our privacy policy. Please be assured that we will not pass your details on to any third parties.
 
 
You can contact me by:
Find me an adviser
accordian map downloadplusminus play-video select-box close downloadmapmapmap mapmapmapselect-boxmap mapvideo arrowarrow arrow