News and blog

Financial avenues to consider after receiving inheritance

inheritanceThere may be a time in your life when you inherit a sum of money from a loved one. This inheritance is worth a lifetime of work, so deciding on the best way to spend or invest their legacy is an important factor to consider.

According to a study carried out by the Office of National Statistics (ONS), more and more individuals are receiving substantial legacies. The data showed that 1.6 million adults had received an inheritance worth £1,000 or more, with half of these legacies worth more than £10,000. The survey also highlighted that the total sum received in inheritance in the UK is on the rise due to the financial rewards reaped from the property market. With this being the case, more and more individuals will need to consider the different avenues available because if you’re not careful when making your choice you could end up missing out on potential returns, or even see the value of your cash start to fall.

£1.25m lifetime allowance draws near

Nearly two months to go until the lifetime allowance on pensions will be reduced from £1.5 million to £1.25 million.

The lifetime allowance is the maximum amount of pension saving you can build up over your life that benefits from tax relief. If you accumulate pension savings worth more than the lifetime allowance, you will have to pay a tax charge on the excess. On the 6th April 2014, anyone who has a pension pot bigger than £1.25million will be hit with a tax charge of up to 55% when they come to take their pension.

Track down your lost pensions

Pension-tracing

With retirement on the horizon, you will need to determine how much income you will receive from your pensions, including workplace, personal plans and state pensions. Recent research by NOW: Pensions, shows that a quarter of over 55s have four or more pension pots and over a third of the people who participated in the research are unaware of where all their pension pots are.

‘Poor value’ pensions putting retirement at risk

We spend our working life imagining our retirement will enable us to enjoy life to the full. Travelling, spending time with family and making the most of our precious free time are common and not unreasonable wishes. However, for many, their retirement dreams have been dashed by poor performing funds and lack of financial planning.

The Autumn Statement and You!

Yesterday's autumn statement was refreshingly different from the offerings of recent years. For once the Chancellor was afforded the opportunity to present a more positive picture of the state of the UK economy, claiming recent economic data showed the coalition's economic plan was gaining traction. Growth has exceeded previous predictions, with the economy expected to grow by 1.4% this year, faster than any other major economy. However, the Chancellor was keen to stress that the hard work isn’t over yet, with the job of recovery “not yet done".

Married couples to receive £1,000 tax break

The Government has confirmed that more than four million married couples and civil partners will be entitled to a new transferable tax allowance. Under the new scheme, eligible spouses and civil partners will be able to transfer £1,000 of their personal income tax allowance to their partner.

Bookmark This

RIS Tweets

Chancellor George Osborne sets date for next Budget https://t.co/IQYPKD5Rh0 https://t.co/EYAqyzRfAf
'Degree needed' to fathom financial small print https://t.co/WFVSUdgUO1 https://t.co/bpNyPQ7Nnd
Older borrowers may be offered mortgages into their 80s and 90s https://t.co/XkPykV0TUR https://t.co/AqKZwmxMRO

Contact us

Retirement and Investment Solutions
5 Lancer House, Hussar Court
Waterlooville
Hampshire, PO7 7SE

T: 01489 878300
F: 0870 0104883
E: advice@retirementis.co.uk