A new survey has found that a majority of British adults are not fully informed about planned pension policy changes.
If you are retirement planning in Cheshire, a raft of changes will start to take effect from next year. These include the increase in the state pension age in 2026, and the addition of pensions to inherited estates from 2027. The age permitting access to tax-free lump sums is also going up, from 55 to 57, from 2028. All of these measures are likely to significantly impact retirement plans.
The UK state pension age is set to rise to 67 from 2026 to 2028, and then again to 68 from 2044 to 2046 for both men and women is 66, but it will rise to 67 between 2026 and 2028. The state pension is currently set at £230.25 per week. It continues to be fixed by a ‘triple lock’ that ensures it keeps up with inflation or average wage growth. There remains some public uncertainty about how many years of contributions need to be paid to be eligible. This is based on a misconception that 24 years is the minimum, when the truth is 35.
There is also a lack of knowledge too around the tax rules governing inheriting pensions, even though 29% of those asked expressed to wish at least a part of their estate to heirs or family members. In 2024, the Chancellor of the Exchequer, Rachel Reeves, announced that retirement funds would cease to be a tax-efficient method of succession planning.
