Retirement and pensions

A series of guides to retirements and pensions.

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Pension changes from April 2011

This new provision has a curious history. The last government announced that tax relief would be restricted to the 20% basic rate of tax for pension contributions for those earning £150,000 a year.

Qualifying for a state pension

The Coalition Government has changed the age rules for qualification for the state pension. Currently the state pension age is 60 for women and 65 for men. The changes announced in 2010 mean that retirement age for women will be equalised with that for men at 65 by 2018 and both will increase to 66 by 2020.

Achieving financial security in retirement

For many people their retirement plans have been devastated by the fall of the stock market in the first decade of the new millennium, reduction in property values and the fall in interest and annuity rates. What chance now of a 'comfortable retirement'?

Pension premiums

There is no limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600.

Pension contributions and tax relief

Any member of a registered pension scheme may make unlimited contributions to a registered pension scheme. However to qualify for tax relief a contribution must be a relievable pension contribution made by a relevant UK individual.

Pension credit

Details of pension credits.

Stakeholder pensions

Stakeholder pension schemes are low-cost pensions meant for people without existing private pension arrangements. They were originally targeted at people who earn more than £10,000 a year and who cannot join an occupational pension scheme. They have, however, turned out to have much broader appeal.

State pension deferral

State pension deferral is the right to defer entitlement to the State Pension. In return for deferring a lump sum accrues with interest added to the deferred entitlement at a rate normally of 2% over bank base rate. Therefore the deferral claim cannot accurately be evaluated in advance. Examples of the potential lump sum entitlement are shown in our tax rates.