All of our April financial guidance factsheets are available to download below. Each one focuses on a different financial aspect to help guide you when setting and reaching your financial goals. If there is anything you are unsure about, or would like further information, all of our independent financial advisers offer a free initial consultation. You can contact your local IFA here.
Adjusting your pension plans
In the ever-evolving landscape of retirement planning, a significant shift is on the horizon that could potentially impact when you can access your pension funds. The normal minimum pension age (NMPA), or the age at which you can start withdrawing from your pension savings, is currently set at 55.
There are a few exceptions to this rule — for instance, in cases of ill health or if you have a lower protected pension age. However, this standard generally applies across the board.
The gift of giving
In the unfortunate event of one’s passing, there’s a possibility that HM Revenue & Customs (HMRC) may levy an Inheritance Tax (IHT) bill on the deceased’s estate. The estate’s total value determines the sum due after deducting any debts and applying all possible thresholds. Two thresholds that come into play are the nil rate b and the residence nil rate band (RNRB).
The NRB currently stands at £325,000, while the RNRB is set at £175,000 in the tax year 2023/24. It should be noted that the RNRB is applicable only if the deceased’s home, or an amount equivalent to it if downsizing provisions apply, is left to a direct descendant. Any amount exceeding these thresholds is subject to the standard rate of 40% IHT. However, if at least 10% o ft to charity, this rate drops to 36%.
Jeopardising financial stability
Securing your family’s financial future is a multifaceted responsibility beyond merely accumulating savings and making long-term investments. It encompasses the creation of a comprehensive plan that ensures the well-being of your loved ones, even in the face of unexpected adversities.
A recent report has revealed that a significant number of UK residents are ill-prepared to meet their monthly expenditure if they were to become incapacitated due to illness or disability.
The content of the article featured is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of the particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any article. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.
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