View more on these topics

Skandia warning over taxfree cash

Skandia is warning that advisers must check if clients consolidating occupational pension schemes are entitled to more than 25 per cent tax-free cash before initiating a pension transfer.

Any client who was a member of an occupational scheme before A-Day may be entitled to more than 25 per cent taxfree cash from this scheme. If a client transfers two occupational pensions that each have a higher cash entitlement to a single scheme, the tax-free cash entitlement could be significantly reduced.

But Skandia says by selecting a provider which has multiple registered schemes available or moving to a single investment platform, the advi-ser can ensure the client does not lose a tax-free cash entitlement through consolidation.

Pensions marketing man-ager Nick Bladen says: “Many clients will simply not be aware that they can take more than 25 per cent cash and there is a real risk that clients will lose that entitlement to tax-free cash through a simple oversight. It is not just clients with big pension funds who are affected either. Simply put, paying tax on pension funds when there is no need is crazy.”

Recommended

Stock tactics

There are a number of undervalued opportunities and a stockpicking approach is essential.

Fidelity’s split success

Jorma Korhonen, manager of Fidelity’s £2.8bn global special situations fund, has sounded a warning about emerging markets, saying his holdings in emerging sectors stand at only at 5 per cent.He said the perception of the risk attached to emerging markets was at a low but he had seen some China stocks increase by 60 per […]

Stuart Pender

The chief executive of Paymentshield believes in making things happen and in his two years at the firm he has rebuilt the management team and, after a big takeover deal with one of the major general insurance brands, is now set on a five-year plan of aggressive growth. Interview by Nicola York.

Pension numbers

The Government’s claim that the new personal pension accounts will represent £2 for every £1 saved deal for investors is under intense scrutiny.

What are the key changes to transform pensions?

By Fiona Tait, pensions specialist In her final article for Royal London, Fiona Tait reviews key changes she believes have transformed, or will transform, pensions. In my 12 years with Royal London I have been paid to review, study and explain the numerous changes to pension legislation which have transformed our industry in that time. This is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment