Welcome to Springfield Financial Services' blog, where we keep you up-to-date on the latest financial news and provide expert insights to help you plan your finances effectively. Today, we want to discuss the recent budget announcements and the impact they may have on your
financial planning. From the removal of the lifetime allowance to changes in taxation and contributions, we'll cover everything you need to know to stay informed and make decisions about your finances. Our team of
financial advisers in Preston is here to help you navigate these changes and create a customised financial plan that suits your unique needs and goals. So let's dive in and explore the key pension changes in the latest budget..
Breaking down the Government's latest budget announcement: What you need to know
At Springfield Financial Services, we're committed to helping you plan your finances, especially with the recent budget announcements that may impact your retirement planning. Here are some of the key pension changes you need to know about:
- The Chancellor confirmed that the Lifetime Allowance, which limits the total amount that can be accumulated in pensions during an individual’s lifetime, will effectively be abolished from April 2023. The move aims to keep highly skilled individuals in the labour market, which may affect your retirement planning.
- Tax-free cash will be limited for people without any form of tax free cash protection to the current maximum level of £268,275. Benefits above the tax-free cash level will be subject to income tax when they are drawn, which may affect your retirement income planning.
- The ability to use pensions to pass on wealth tax efficiently to the next generation has been greatly enhanced, creating a valuable opportunity for estate planning, especially where beneficiaries pay lower levels of income tax.
- The annual allowance which limits the total amount that can be paid into pensions by, or on behalf of, an individual is set to increase from £40,000 to £60,000 from April 2023.
- The minimum tapered annual allowance will increase from £4,000 to £10,000. This is accompanied by a rise in the adjusted income threshold to £260,000. The threshold income figure is to remain at £200,000.
- The money purchase annual allowance (MPAA) will increase from £4,000 to £10,000 per year, allowing those who have previously accessed their pensions flexibly to pay more into pensions.
Secure your financial future today: Partner with our award-winning team of financial advisers
At Springfield Financial, we understand your financial future is important to you. That's why we're here to help you achieve your goals. Our team of highly qualified financial planners have over 100 years of experience in financial planning and have been recognised with numerous awards for their exceptional services. Don't wait any longer to secure your financial future. Contact us today and let us help you achieve your financial aspirations.
For further information or to arrange an initial no-obligation consultation at our offices or another mutually convenient location, please telephone us on 01772 729 742, or simply fill out our online enquiry form and we will give you a call to discuss your requirements.