Trivial commutation

Taking all of a pension pot as a lump sum

When someone reaches retirement, they can take up to 25% of their pension as a tax-free lump sum (called the ‘pension commencement lump sum’). The remaining 75% has usually been used to purchase an annuity, a financial product that provides them with a guaranteed income for life, or been left invested, allowing them to take a portion of their pension pot each year to provide an income – known as ‘income drawdown’.

Accessing pension benefits

Greater choice and flexibility about how retirees use a
pension pot to fund retirement income

T he 2014 Budget announced major changes to the way that members of a defined contribution pension scheme could access their pension savings. In March 2014, the Chancellor George Osborne announced changes to the pension world which would revolutionise the way members of defined contribution schemes could access their pension benefits. These wide-ranging changes move away from individuals being required to purchase an annuity and instead offer a number of different options for drawing their pension benefits.

Consumer apathy

Many people do not yet fully understand the
significance of the new retirement income choices

Many of Britain’s over-55s say the massive changes to retirement income announced in last year’s Budget 2014 will have no impact on them, research from Aviva’s latest Real Retirement Report shows.

Tax year end checklist

12 strategies to keep your tax liability to a legal minimum

The run-up to the tax year end on 5 April 2015 is the perfect time to consider tax planning opportunities and to put in place strategies to minimise tax throughout 2015/16.

‘Job for life,’ a distant memory

New workers face a significantly longer working life than past generations

The typical Briton entering the workforce today can expect to have nine jobs, including one major career change, across 48 years of working[1].