Craig McConnon

Those retiring this year can enjoy £1,200 more than those who retired ten years ago. While this is the case, which pushes the pre-tax income to £19,900 per annum, there are still those who have not planned and saved for their retirement years. In fact, forty six percent of those retiring feel that they are not financially prepared for giving up work or they are not confident in the preparations that they have made. Those who retired last year, were receiving £18,100 per annum, which has now been boosted to just below £20,000. Final salary pension schemes which provided retirees with a generous inflation proof income have become far and few between these days with only a half of all employees who are nearing retirement being in the position to have an income which will ensure a comfortable retirement. Twenty seven percent of these soon retired persons believe that they don't have enough pension to retire comfortable in the long run. Our biggest concern here a...

Here at PWS Dubai we are seriously concerned with the state of pensions in the United Kingdom. We work with thousands of clients helping them identify the best pension solutions to help them save and make their money grow so that they can live comfortably when its time to retire. That being said, a recent study has revealed that UK retirees are about to face the biggest income drop when they decide to retire, when compared to pensioners in other countries, which are developed, around the world. What does this mean? It means that more reforms are necessary worldwide to deal with the aging population and the financial consequences thereof. The Facts An intercogovernment economic organisation, the Organisation for Economic Co-Operation and Development, has advise that pensioners in Britain will receive only twenty nine percent of the average working wage when relying on state schemes when it comes time for retirement. The concern here at PWS Dubai is that this ...

At PWS Dubai, we are passionate in helping our UK clients manage their pension pots and secure a financial future for their retirement years. These days people are living until an older age, but this means that your pension has to stretch out for much longer. As you can imagine this is a serious concern for us, as the State Pension starts to dwindle. A recent study has shown that approximately fifteen million people in the United Kingdom don't have a pension plan, which means that they will be relying solely on the state pension, which is a bleak state of affairs. FCA Survey The FCA conducted a survey called The Financial Lives survey, which took a close look at thirteen thousand consumers and found a scary statistic that only thirty one percent of UK adults have no private pension and will be relying only on the state pension that they will receive, which is currently sitting at £159.55 per week, barely enough to pay rent, utilities and eat. The main concern t...

There is a certain amount you are allowed to save throughout your lifetime for your pension which has tax breaks, but the tax breaks are due to rise for the very firs time since April in 2010. This has been confirmed by the government and is something everyone who is saving into their pension pots needs to be aware of. As of April 2018, the lifetime allowance for pension contributions will be increased by £30,000. Which will take the lifetime allowance from £1 million to £1.03 million. All pensions are tested for lifetime allowance at different points, this is also done when you make your first withdrawal, then at the age of seventy five. Any excess would result in tax charges. When the charges are applied, the tax relief is wiped away on all contributions. There has been a forty three percent reduction in lifetime allowances over the past seven years, even with the increase which was announced in the Budget. You could save £1.8 million into a pension in the 2010 / 2011 t...

People of all ages find themselves in debt from time to time. From credit cards to loans and even mortgages, most people owe some money somewhere. Sometimes the debt can become too much, especially if you find yourself on the verge of being retrenched, then your income is going to disappear and paying back these debts is going to be even harder than anticipated. Also remember at any age, you want to be saving for your retirement, something you should be looking at from the day you start work. Stop Borrowing Money Today The very first step to getting out of your debt quickly is to top borrowing. Often you will find you use your credit card as you near the end of the month so you can continue your current lifestyle. Not using the credit card may mean you cannot go out this weekend or you cannot buy the new furniture you wanted straight away, but you won't be borrowing more money and therefore it will help you pay back the debt much faster in the long run. Set Up ...

There has been quite a reshuffle when it comes to retirement age in the United Kingdom. It has gone as far as Chancellor Philip Hammond possibly using the November 22 Budget to refocus on the balance between young and old, getting the younger to pay for the older so that they can benefit. The concern is that official data has suggested that the elderly are already working for longer than they anticipated to ensure their financial security before retiring. This is becoming a common trend and we are seeing our older generation working longer and longer in order to secure their financial security, bridging the gap between an inadequate pension pot and a longer retirement. In fact the Department for Work and Pensions in the United Kingdom released statistics who show that the average retirement age has exceeded sixty five for men for the first time and women are closing in very quickly. There are more than one in ten men working over the age of seventy, while eight ...

One of the most important questions you should be asking yourself is whether your pension pot is enough to last your retirement years. Analysis has shown that if you are putting down more than five percent per year, you could still not have enough for your retirement, in fact you could have an empty bank account by the time you reach eighty. In fact the analysis focused on people retiring in 2000 with a £100,000 pension pot and found that if the saver withdrew seven percent each year, they would run out of money by 2014, that gave them only £7,000 per year. For those who only took six percent a year, they still had a small amount left in 2014 but still not enough left by the time they reach 2020. This information is valuable for anyone who wants to manage their limited savings to ensure a financially secure retirement. Men should manage to enjoy retirement for around eighteen years and women for twenty years. Final salary schemes are safe and ensures that the ...

New research has revealed that it doesn't matter where you live, you will find the state pensions or any benefits you receive is not enough to ensure you have a comfortable retirement, providing you with enough money moving forward. Government pensions are not the leading choice for anyone these days, as they only provide a minimum amount which is designed to cover basic expenses, anyone can see that this is not enough to maintain your current lifestyle and live comfortably in your later years. Private pensions are important due to the fact that they can fill the gap between your financial needs and your state pension payout. This is according to new reports which have just been released and it makes sense. Start Saving As Early As Possible At PWS Dubai our recommendation to all our clients is start saving for your retirement as soon as possible. Whether you are twenty and just started your first job or you are forty and haven't saved yet and are now worr...

From 1 October 2017 any new start up business must enrol employees into a workplace pension scheme immediately. This comes at the same time that HMRC advises that there is approximately nine million people contributing to personal pensions in the 2015/16 year. The good news is that this is the highest records to date with more people having a good amount to retire on in the future. But what are your options? Are you working for a company that just opened or are you a sole proprietor that is self-employed, but also want to ensure you have a future income when it's time to put down the tools and enjoying your later years? Auto enrolment has been taking off since it was introduced some years ago. This ensures that employees are automatically enrolled into their workplace pension schemes, ensuring their futures are taken care of. Both employer and employee contribute to this pension scheme. This scheme has made over £24 billion in the 2015/16 tax year. Unfortun...

There are thousands of ex-steelworkers in Teesside that need to now their options before the vote takes place which could see them losing even more in their pension pots moving forward. British Steel Pension Scheme members are currently being asked to make a decision between two options when it comes to their pensions. This has happened after Tata Steel managed to separate itself from the scheme successfully only weeks ago. The Facebook Support Group for British Steel Pension Scheme members has grown to more than four thousand and their concern is that they could see a major drop in their pensions, with Tata and Corus workers losing more than they may think being completely unaware of the risks involved in their decision. Pensions Frozen to 40% Cut in Lifetime Income Those who retired prior to 1997 are going to be the hardest hit and their pensions will basically be frozen and pensions who are aged sixty will see a cut of approximately forty percent of the...

It has been revealed that more people are taking advantage of the pension freedoms being offered in the United Kingdom as Britain's annuity market faces certain death. This is based on experts who have used official figures released on 8 September 2017 as sales continue to drop. Pension Shackles It has been more than two years since George Osborne released pension shackles and the number of people who are accessing lump sums is on a steady rise. The Financial Conduct Authority (FCA) recently released a six month data report revealing the new trend. There was a nine percent increase in the number of pension pots being accessed for the very first time and the new draw down arrangements were increased by four percent. The concern is that annuity sales have dropped dramatically by a staggering sixteen percent in six months, which is a sign of concern. Investors Not Taking Advantage of Guaranteed Outcomes The data showed that draw down demands are outstripping ...

Yes you just read that right. There are millions of people in Britain that don't know that they are sitting on pensions collectively in excess of £800 billion. This would be from former employers where they were part of a final salary scheme. This is based on new research which has just been released. It reports that there are around five million deferred members who were part of defined benefit funds, these people have money in pension schemes with their former employers and this means that they have absolutely how much their pension would be worth to them when given in one lump sum. This showcases a sheer lack in communication between the person and their old pension scheme provider. When you get a new job and transfer your pension scheme to your own retirement pot you are often offered in the region of £158,000 to £190,000 or it could be up to thirty times the annual value of the pension as one lump sum. But this means that the value of pension promises due to thes...

Around two hundred thousand savers are believed to have paid too much tax using the new pension freedoms. This is available to savers who are over the age of fifty five. The problem is that many of these saves have no idea that they have paid too much on tax, which is why so many pension advisors are asking clients to thoroughly check on the tax they have paid. One-Off Withdrawals The reasons that many of the people using this pension freedom is any one-off withdrawal is being seen the first regular pension payments. This means that HMRC is generating a tax code that is Month One. This means that they deduct as if the withdrawal is the first one of many and as a result, there are thousands of individuals who may have overpaid in taxes in the 2016/17 tax year. Information provided by a Freedom of Information request showed that two hundred and forty two people made one withdrawal from their pension, as this is the most popular feature of the pension freedom new ...

  Thousand of people immigrate to different countries each and every year, but what happens to your pension? Before you jump on a plane and start your new life in a completely different country, you may want to take a closer look to how it is going to impact your pension along with any taxes payable. The majority of people will possibly have two pensions. The first is their British state pension and the other is a pension done through their work. Anyone who currently qualifies for a UK state pension can make to any EU country and is protected by the current triple lock. In addition t this, there are seventeen other countries that in agreement with the UK offer an annual increase. Countries such as South Africa and Australia, Canada and New Zealand are all frozen right now at the same rate. Right now if you decide to draw your state pension in South Africa for example, you will only receive £159.55 and that is for life with no increases, so this is something you d...

A tax loophole could mean that thousands of the lower earners are losing out when it comes to tax relief on pension contributions. This could apparently be the scandal of the future, according to a former pensions minister in the United Kingdom. This isn't the first time that this issue has been flagged. This loophole is affecting many non-taxpayers who are saving for the future in certain pension plans. The issue is a result of the method in which pension schemes increase the pension savings of individuals. Anyone who is contributing to a pension in the United Kingdom is entitled to a Government bonus. This includes non-taxpaying individuals. This bonus is paid out at a marginal rate of income tax as a tax relief for taxpayers. Those who do not pay tax as they earn below the taxable income per year are entitled to the bonus based on an overall cap. The minimum annual salary to quality for the bonus is £11,500 per annum. For any non-taxpayer, they can pay i...