You are here: Home - Retirement - Retirement planning - News -

Retirees could miss out on £236m in tax savings by not taking advice

0
Written by:
15/01/2018
People could miss out on £236m in potential tax savings in 2017/18 by failing to take advice when they retire.

In spite of this, there has been relatively low uptake of the government’s advice voucher scheme, according to VouchedFor. Launched in November, the scheme allows employees to sacrifice up to £500 taxable salary per year in return for a tax-free payment from their employer, reimbursing them for any fees paid for pension advice.

Employers and advisers have until April to take advantage of the scheme, which could save people up to £310 per year in tax and National Insurance, depending on their top rate of tax. VouchedFor has a pension advice salary sacrifice voucher scheme under the new rules, called Pension Advice Vouchers.

At the same time, WEALTH at work has launched a telephone-based guidance service to help employees and pension scheme members make decisions on their pensions and lifetime savings.

The group said that there is increasing demand on employers and trustees to support employees and members with the complex financial decisions they face when retiring.

Its UK telephone based helpline is available to those who are approaching retirement. It is designed to help callers understand their options at retirement, including defined benefit (DB) and defined contribution (DC) schemes and any other pensions and savings they may have.

Following the call, employees and members will receive a written report of their options, including a pre-retirement checklist of things to consider.

Jonathan Watts-Lay, director, WEALTH at work, said: “Employers and trustees are coming under increasing pressure to support their employees and members in getting good outcomes from their pension savings.

“But without the right help and guidance many could be at significant risk of making costly mistakes such as paying too much tax, or falling prey to devious scams. Financial guidance offers the support employees and members need to help them clarify elements of their financial situation and to gain a deeper level of knowledge around their options.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Stock of the week: Randgold Resources

Ian Forrest, investment research analyst at The Share Centre, picks ‘golden oldie’ Randgold Resources as stock of the week.

Close