Don’t make this big mistake with your tax free pension lump sum
The 25pc tax-free lump sum is pensions’ greatest selling point. But its very appeal encourages us to forget about the other 75pc
14 May 2021 • 6:00am
I have spent many years and column inches trying to explain the inner workings of Britain’s pensions system and I’m afraid only one fact really sticks in the minds of most people: that you can take a quarter of your pot entirely tax free.
The lump sum is one of pensions’ greatest selling points. But this gives rise to a problem: we forget about the other three quarters.
Those aged over 80 are entitled to weekly benefit regardless of National Insurance record
12 May 2021 • 6:11am
The Government has failed to notify 107,000 over-80s who receive no state pension that they are eligible for a minimum of £82 per week.
An estimated £400m has gone unclaimed every year by retirees who have been mistakenly living on no state pension, according to research from LCP, a consultancy. More than 65,000 women and 42,000 men over the age of 80 are owed payments.
From the age of 80, everyone is entitled to a £82.45 weekly state pension regardless of their National Insurance contributions. However, pensioners have to claim and tackle onerous form filling, Sir Steve Webb, former pensions minister said.
Prudential keeps pensioners in the dark over IT meltdown
Savers locked out of their pensions want answers
9 May 2021 • 5:00am
Savers have been left in the dark by one of Britain’s largest pension companies after it repeatedly refused to answer questions about an IT meltdown that has seen customers locked out of their pensions.
Prudential customers have been blocked from their retirement savings for months on end, unable to receive updated account statements because of a botched systems update. Many pensioners who relied on this income have been forced to make up the shortfall through other means.
Prudential has been unwilling to share crucial information over the disruption, repeatedly failing to respond to questions from Telegraph Money. The pensions giant, which oversees more than £51bn in retirement savings, has offered no indication of when the problem will be resolved or even how many customers have been affected.
Annuity vs drawdown: the best option for a £100k, £500k and £1m pension
One offers low income for no risk but the other involves buying stocks. Which is best for you?
3 May 2021 • 5:00am
Retirees have more options than ever before when it comes to how they want to spend their pension pot. But with choice comes more responsibility, and more room for error.
The once-favoured annuity has fallen in popularity as rates have dropped to the extent most buyers are unlikely to get even their initial investment back.
Many have favoured the more flexible option of dipping into their nest egg as and when they need the cash, known as “drawdown”. While this may work for most retirees, a guaranteed income for the rest of your life does have its merits.