What a relief - Retirement and Legacy Planning

One thing we have gleaned lately is that when the Pensions Minister believes change is needed - he makes it happen.

Following the surprise pension announcements in the 2014 budget, which no one saw coming, Steve Webb’s comments about introducing a single tax relief rate possibly carry more weight than before.

Could this be the right time for him to deliver his swansong by creating a single 30% pension contribution tax relief rate?

While the Government is in its “run-up-to-election strategy” and there being little, or no, new legislation on the books perhaps this is the right time for him to strike?

And if he were to include in this the Chancellor’s inference that the 55% pension death benefit tax should be reduced as it is “inappropriate in most cases” - things really come alive!

And if we add to this Mr Webb’s preference for scrapping the lifetime allowance could he possibly be preparing to deal the final ”Ace-in-the-pack” of radical pension reform; bringing the hurdy-gurdy of Pensions Simplification to a close?

Whatever Steve Webb’s final thoughts, one thing for certain is that pension legislation will not stand still and retirement planning and legacy considerations will continue to change and evolve.

Whichever way he goes there will always be winners and losers – after all, the glass is either half full or half empty – but one thing is clear the need for retirement and legacy planning advice has never been greater.

Helen Wilson

Consultant

Telephone:  +44 (0)20 7893 3456

Email:  getintouch[@]broadstoneltd.co.uk