Fixed Probate Fees, call:

0800 612 6105


Alternatively local rate:

020 8150 2010

Is my pension liable for Inheritance Tax?

Much has been made recently of the decision by many people nearing retirement age, deciding to work longer, not simply because they enjoy their work but in many instances, because they simply can’t afford to retire.

This delay, although in many instances unfortunate, can too have its benefits.

In a recent ruling, it was agreed that pension funds will now be liable for Inheritance Tax, if not taken within two years of the person’s Selected Retirement Age (SRA), if they have a life threatening condition at the time of their SRA.

Some advisors are therefore suggesting that their clients increase their SRA on all pension documentation, to 75, although this could result in the loss of guaranteed annuity rates offered at  the time of retirement or imposed penalties for taking pension funds before the age of 75.

It seems to me that rather than working hard all our lives in order to enjoy a peaceful retirement at 60 or 65, we are becoming a nation that, thanks to the government, is fearful of what will happen to us at old age.  Increasing taxes, limited pension facilities and mounting debt means many of us can no longer take the time to enjoy family and leisure activities, safe in the knowledge that if necessary, we can pay our own nursing home fees and our own funeral, still leaving our beneficiaries a sum of money to help them out too.

It truly does appear that we can no longer afford to be old in the UK.

Leave a Reply

Your email address will not be published. Required fields are marked *

------------------------

Call us today on:

0800 612 6105

Or on local rate:

020 8150 2010

------------------------

Alternatively email:

admin@iwc-ltd.co.uk