Posted December 20th, 2010
When appointing an expert on pension sharing matters it is always worth looking at whether the report you will receive is from an authorised source or not.
For pension sharing reports I always work in conjunction with an actuary as I always feel comforted by the fact that the actuarial assumptions being used are sensible, well thought out and take account of future changes, in for example, annuity rates and life expectancy. And if I have a problem I have recourse to the Institute of Actuaries.
So my advice when appointing is to check the credentials of who will be doing the report, what assumptions they will use and what recourse you have if things go wrong.
If this affects you or you are looking to instruct an pension expert – please contact me on 0800 092 1220 or send me an email – phil@thedivorceifa.co.uk
Tags: Actuarial Assumptions, Actuary, Annuity rates, Authorised, Expert, Expert on Pension Sharing, Life expectancy, Pension, Pension Expert, Pension Sharing, Pension Sharing Reports | Posted in Pension Sharing |
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Posted July 30th, 2010
From 2011/2012 the Government announced in its budget their intention to remove the compulsory need to purchase an annuity from age 75.
As an interim measure, legislation will be written into the Finance Bill 2010 to increase the purchase age to 77. This increase in the age to 77 by which time the member must secure an income has effect on or after 22 June 2010. The change applies equally for Inheritance Tax purposes to members who die on or after that date.
Since April 2006, it has not been compulsory to purchase an annuity at age 75 (although some individual schemes insist on it) when an alternatively secured pension (asp) became an option. ASP has not been universally popular due to the poor income rates and punitive tax charges (up to 82% on death!).
The Government intends to consult shortly on the finer detail of what is planned. Watch this space on developments which in my opinion, will have far reaching implications for divorce, annuities, annuity rates and retirement planning.
If you require any further assistance, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
Tags: 82%, Age 75, Age 77, Alternatively Secured Pension, Annuities, Annuity, Annuity rates, April 2006, ASP, Compulsory annuitisation, Divorce, Pensions & divorce, Retirement Planning, Tax | Posted in Annuity |
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