Latest Blogs
-
Lisa Webster: Till pensions do us part
There have been some fluctuations in recent years but overall divorce rates in the UK have been in decline since the 1990s.
-
Tilley: Let’s end the SIPP vs SSAS debate for good
As you might know from my previous columns on SIPPs Professional, I am, and have been for some time, a huge advocate for Small Self-Administered Schemes (SSAS).
-
Lisa Webster: Pre-Budget withdrawals are spiking again
Ever since “tax-free cash” changed its official name to “pension commencement lump sum” back in 2006 there have been pre-Budget rumours that it was going to change – and not for the better.
-
Tilley: Will Pensions Dashboards be a missed opportunity?
I can’t be alone in thinking that the recent House of Lords committee sessions on the Finance Bill and, in particular, discussion on bringing unused pension pots into scope for inheritance tax (IHT) made for interesting viewing.
-
Lisa Webster: A tiny step forward on IHT and pensions
Last month I talked about the headaches and liabilities of being a personal representative (PR) for a deceased’s estate when pensions are included for inheritance tax (IHT) purposes from 6 April 2027.
Popular News
-
Scottish SIPP firm among 13 in default
The Financial Services Compensation Scheme (FSCS), the industry-funded consumer compensation body, declared 13 regulated firms in default between August and November, including a Scottish SIPP firm, it reported this week.
-
HNWIs face IHT risk by not recording gifts
Nearly half (45%) of HNWIs have no written record of what they’ve gifted to loved ones, according to new research, leaving them at risk of falling foul of IHT rules.
In November, the DWP detailed its plans for the new type of occupational pension scheme which will be subject to a 0.75% charge cap with the aim of keeping costs down. Royal Mail is already looking at introducing a CDC.
The government gave the green light last year for CDCs and plans to legislate for them in due course although critics have already warned it could take years for CDCs to arrive and they may risk fluctuating income for members in retirement because of their structure.
XPS says in its submission to the government on the proposal to introduce CDCs that they could provide “better outcomes” for employees than traditional DC schemes.
However, it said they may take choice away from members and present additional risks so it is “critical they are well designed and managed.”
XPS Pensions Group says there are three key areas the DWP and Pensions Regulator will need to consider to ensure the development of a successful CDC framework. These include:
1. Sustainability and resilience of CDC schemes for the future
2. How to ensure fairness of outcomes between generations
3. Member understanding and expectation
Consultation on CDCs ended last week.
Jacqui Woodward, senior consultant at XPS Pensions Group said: “In our view it will be possible to develop an appropriate disclosure framework that adequately communicates CDC benefits to members.
“However, we would caution against underestimating the risks of CDC schemes in the rush to get them established. It is worth taking time to make sure that the new types of scheme can offer a genuine and safe alternative to members and we look forward to providing our input to further consultations on the detailed design of CDC arrangements.”