The triple lock was introduced in 2010 and dictates by how much the state pension increases each year. It confirms that the UK state pension will increase by the highest of one of 3 measures. The three measures are: National Average Earnings – This is calculated by taking the monthly wage and salaries survey which samples around 9,000 employees in the UK. Inflation taken from September the previous year. In September 2022 the Consumer Price Index (CPI) was 10.1% and 5%   This has resulted in state pensions increasing by 10.1% in April 2023. The full new state pension will increase from ..read more

The annual allowance will increase from £40,000 to £60,000 from 6 April 2023. This is the maximum amount someone can contribute to a pension each year while still receiving tax relief. This allowance has also suffered lots of tinkering over the years. In 2010/11 it stood at £255,000 before being reduced to £50,000, and then again to its current level of £40,000 – it’s been here since 2014/15. However, as wages have climbed we’ve seen more and more people breaching the allowance – over 41,000 declared a breach in their self-assessment tax returns for 2020/21. Andrew Colyer-Worse ..read more

What’s New In the Spring Budget 2023 In today’s budget the chancellor has announced plans to abolish the lifetime allowance (LTA). The annual allowance will also be increased from £40,000 to £60,000 per year. The Money Purchase Annual Allowance will be increased from £4,000 to £10,000. Tax free cash (also known as a pension commencement lump sum – PCLS) will be capped at 25% of the current lifetime allowance except where protections apply. It will be £268,275. The adjusted income level required for the tapered annual allowance to apply to an individual will be increased from £240,000 to £260 ..read more

FixMyPension.com is a firm of financial advisers and has been an independent financial adviser since 1985. We offer an efficient professional service on a wide range of corporate and personal areas including pension planning, investments and protection. The initial meeting with new clients is free of charge. During this meeting we will discuss payment options and agree a structure that suits you. Pension freedoms have created a great deal of confusion in the retirement market. Whether you want a guaranteed income for life – annuity, or a variable income – flexi access drawdown, we can help you ..read more

Both Toys R Us and Maplin are the latest in a long line of high profile UK stores to go into administration. Their collapse will see 5700 redundancies between them, and many of the employees no doubt wondering what will happen to their pensions. If I get made redundant, is my company pension safe? What will happen with your pension will depend on what kind of pension you have. Defined Benefit (Final Salary Pension) A Defined Benefit Pension Scheme is sometimes known as a Final Salary Pension. Rather than pay directly into a pension pot, the pension provider will promise to give you a certain ..read more

Government Pension IT failure leads to billions in arrears over decades. The Department of Work and Pensions computer errors have led to millions of pensioners being paid the wrong amount. The problem affects around 134,000 people who first claimed state pension before April 2016 and could amount to around £8.900 per individual. Who is affected? Official reports estimate that approximately 23 per cent of pensioners have been underpaid and 17 per cent overpaid. The following groups are most affected. People who reached State Pension age before 6 April 2016 and are either married or in a civil ..read more

This week, we thought we would put together some facts about pensions that you might not know. From what day of the week you can expect to get your State Pension to how much the government pay for pensions. What day of the week do you collect your State Pension? The day of the week that you collect your State Pension depends on the last two digits of your National Insurance Number, not the day that you turn retirement age. So which weekday will you be collecting your pension? Monday – 00-19 Tuesday – 20 – 39 Wednesday – 40 – 59 Thursday – 60-79 Friday – 80 – 99 Government Pensions Outlay is ri ..read more

The Pension Triple Lock.There’s been much talk about the Pension Triple Lock of late, but what is it and how might it affect us in the future? Triple Lock was put in place by the government in 2010. It was an initiative aimed at protecting state pensions from diminishing over time by raising it yearly by a minimum of either 2.5%, the rate of inflation, or the average earnings growth, whichever is higher. Triple Lock has so far served pensioners well. According to the Institute for Fiscal Studies, “between April 2016, the value of the state pension has been increased by 22.2%, compared to grow ..read more

We have compiled a glossary of the common pension terms to help you find your way through the sometimes confusing jargon. Accrual Rate The Accrual rate is determined by how fast you accumulate benefits in a Defined Benefit Scheme. The figure is often a fraction multiplied by your earnings to calculate your final pension payout. Accumulation In pension terms, accumulation is the building up of funds in a pension. Active Member An active member is a person that is currently making contributions to a pension scheme. They may also be referred to as a contributor or current member. Actuary Actuarie ..read more

Much has changed in recent months. The UK economy is still feeling the repercussions of Brexit and the pandemic and now faces economic pressures from the war in Ukraine. We have a new King on the throne, and Liz Truss has taken over from Boris as the new Prime Minister. Her mission to reduce taxes to boost the economy has led to controversy in the September 2022 mini-budget. The new chancellor, Kwasi Kwarteng, announced a 45 billion tax-cutting package for the highest earners. The measure to tackle inflation has been severely criticized. As a result, the UK pound plummeted to its lowest level ..read more