Latest Blogs
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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.
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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).
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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.
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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.
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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
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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.
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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.
Pension transfer values - as measured by the XPS Pensions Group Transfer Value Index - fluctuated “mildly” during June 2018 with a small fall during the month, says the firm.
The index was £234,000 at the end of May and £233,000 at the end of June.
The difference between maximum and minimum readings of the Transfer Value Index over June was £4,400 (or around 1.9%).
The index tracks the transfer value that would be provided by an example DB scheme to a member aged 64 who is currently entitled to a pension of £10,000 each year starting at age 65 (increasing each year in line with inflation).
XPS points out that different schemes calculate transfer values in different ways so a given individual may therefore receive a transfer value from their scheme that is “significantly different” from that quoted by the index.
Sankar Mahalingham, head of DB Growth, XPS Pensions Group, said: “Transfer values have been stable over the first half of 2018, during which the Index has fluctuated by only £8,300 (or around 3.6%).
“If we compare this to 2017, when in both halves of the year the index fluctuated by £14,000 (or around 6%), we can see that although transfer values remain close to historic highs in 2018, there has been a notable reduction in volatility.
“Given the recent UK political upheaval and its potential impact on the approach to Brexit, coupled with the changing global political climate (for instance in relation to possible escalation of trade wars), it remains to be seen whether this low volatility in markets and transfer values will continue over the coming months.”
XPS Pensions Group claims to be the largest pure pensions consultancy in the UK, specialising in pensions actuarial, investment consulting and administration, with revenues of over £110 million. The parent company is also a significant SIPP provider.
The company works with over 1,200 pension schemes, including 25 with over £1bn of assets, and undertakes pensions administration for over 600,000 scheme members.