#steve webb

[creativemedianews]

How much tax on a deferred pension lump sum? STEVE WEBB answers

How much tax on a deferred pension lump sum? STEVE WEBB answers #deferredpension #Howmuchtax #lumpsum #SteveWebb

How much tax on a deferred pension lump sum? STEVE WEBB answers

[alison321singer]

Miracles 1b

I am singing and Steve Webb is playing the keyboard for the song called "Miracles by Gary Numan" recorded through my microphone.

"Copyright Disclaimer Under Section 107 the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use." All rights go to their respective owners. No Copyright Infringements of rights intended. I make no money from my videos, which means none of my videos are monetize.

Yes, I have permission to this music as a backing track. From Steve Webb, "Hi Alison. Sure you can, just mention me in your credits."

Music arrangement by Steve Webb Link to original video: https://youtu.be/nAmaehlnrEI Song: Miracles Artist: Gary Numan

[davidhencke]

A scandalous cover up: The DWP and Ombudsman let down millions of people promised an indexed Guaranteed Minimum Pension for life

A scandalous cover up: The DWP and Ombudsman let down millions of people promised an indexed Guaranteed Minimum Pension for life

Steve Webb, former Liberal Democrat minister, who piloted the change in pension law in 2014 Only two people given a total of £1250 compensation out of millions who lost out This is a complicated story but bear with me. Under the old pension arrangements (abolished in 2016) employers who decided to contract out of the old SERPS scheme would save on their national insurance contributions (NICs)…

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[oneminutemoneymagazine]

Pension Plans: An Inheritance Tax Avoidance Vehicle

Pension plans have always involved an element of income tax avoidance.  In recent years, they have become a major way of non aggressive avoidance of inheritance tax.  Probably the main reasons for this are:-

- House price inflation in parts of the UK has taken more families over the inheritance tax threshold.

- Outside the public sector, the vast majority of pension plans are now on a defined contribution/money purchase basis, as opposed to the older style final salary/defined benefit schemes.

- The Coalition Government of 2010 to 2015 brought in “pensions liberalisation” under Pensions Minister Steve Webb (Liberal Democrat) and Chancellor George Osborne (Conservative).

Looking at defined contribution plans, each individual has an identifiable pot of assets.  These pots are held under trust and the individual can ask the trustees to pay out the proceeds in a particular way if they shoud die.  This is known as a nomination and the trustees usually follow the wishes expressed, even though they are not legally bound to do so.  If someone under the age of 75 dies, the assets in their pension pot are usually encashed and paid out as lump sums to dependants, although they can be used to purchase a pension for a widow or widower.  The lump sums are not subject to inheritance tax or income tax.

The situation is different for individuals aged 75 or more.  If the documentation has been drawn up correctly, the pension pot can be passed on in its current form and hence remain invested for the benefit of the widow(er) and any sons and daughters.  It would be split so each recipient would have their own pot.  No inheritance tax applies, even though income tax generally does when benefits are taken out of the pot.  It is essential to talk to a financial adviser (especially an IFA) when setting up the original pension plan as some are more flexible than others.

Personally I disagree with pension plans becoming an inheritance tax avoidance vehicle and have been very critical of the Coalition Government’s “pensions liberalisation” for a number of reasons.  This is, however, a minority view.  It seems very surprising that the present Labour Party leadership have not expressed a similar view.

(27/01/2019)

[oneminutemoneymagazine]

Latest News re Cashing in Private Pensions already being Paid

The Conservative Government (and hence Pensions Minister Baroness Ros Altmann) announced yesterday that the proposal to allow people to cash in private pensions already being paid would be implemented from 6th April 2017.

It’s best to reserve judgement for now because the approach is more cautious than that of the previous Coalition Government (and hence its Pensions Minister Liberal Democrat Steve Webb).  Amongst the issues to be considered are the extent of official guidance and/or advice, tax and value for money.

As a preliminary thought though, many pensions providers will be pleased to buy back very small pensions because they cost a disproportionate amount to administer.  There is, therefore, an argument that 10 pensions each of £10 per month should result in a higher cash payment than one equivalent pension of £100 per month. 

It remains to be seen whether there will be a statutory actuarial basis for pensions providers calculating cash offers, but it would need to allow for the saving of future administration expenses, whether the pensioner engaged in dangerous sports (hence had a lower life expectancy) and many other factors.  Otherwise pensioners with financial advisers would be seeing whether they could exploit anomalies and hence increase their net income.

This subject is far more complicated than many (including the old Coalition Government) may have realised.

(16/12/2015)

[malswebparty]

Offer to Some People Entitled to a U.K. State Pension

If you reach your state retirement age before 6th April 2016, there’s an interesting offer from the DWP to purchase extra state pension between now and 5th April 2017.  It’s very competitive for some, but others should avoid it, so, if it applies to you or someone you know, please have a look at the last two posts on my other blog oneminutemoneymagazine.

(29/10/2015)

[oneminutemoneymagazine]

Buying Extra State Pension (aka Class 3A Voluntary Contributions)

If you’re entitled to a U.K. basic state pension and reach state retirement age before 6th April 2016, there’s a one-off opportunity between now and 5th April 2017.  For a lump sum, you can purchase up to an extra £25 per week (about £1,300 p.a.) of additional pension.

Annuity purchase may not currently be fashionable, but this offer is worth looking at.  The pension bought will increase in line with inflation (the “triple lock” does not apply) and there is a 50% spouse’s pension.  The cost of each £1 p.a. of pension is “actuarially fair”, i.e. younger people pay more.  The pension is payable for life, but a refund is made for those unlucky enough to die within 90 days of purchase.

I looked at the cost of purchasing the maximum £25 per week for a person aged 65 and found it to be £22,250.  I then looked at https://comparison.moneyadviceservice.org.uk/en/Annuity/FindAnnuity/YourDetails and found that the most that £22,250 would purchase from an insurance company was about half of the original £25 per week.

Credit for this offer goes to the old Conservative/Liberal Democrat Coalition Government in general and its Pensions Minister Steve Webb in particular.  It generally favours people with lower than average incomes.  For many, it is the best value for money out there for annuity purchase and it is equally competitive if you buy only the minimum extra of £1 per week.

But it’s not right for everyone.  Please see the next post “Buying Extra State Pension - People who should be Cautious”.

(28/10/2015

[islandersinsight]

Farewell to the Nassau Coliseum: Day 62

Farewell to the Nassau Coliseum: Day 62

I’m hosting my old college roommate for a week as he is back in New York beginning his new job. Originally from Pennsylvania, I most likely would have turned him away had the result on Thursday night be different.

But shootouts tend to be Islanders territory and all was well in the Pantorno household.

With the absence of Okposo, the Islanders have had to have different players step up to make…

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