The Gherkin, London Wednesday 20th May 2015
Russell attended the Adviser Edge event held on the 34th floor of the impressive Standard Life headquarters at the Gherkin, London.
Again, pensions freedom was a hot topic and was summed up perfectly with the phrase: ‘The Age of Compulsory Annuitisation is Dead’. We were reminded to ensure that our clients’ older style pensions could make the most of the new pension rules and that our clients understood the importance of having updated Death Nomination forms in place. This can be essential in ensuring that their nominated dependents (not necessarily purely close family members any longer) can receive the Right money in the Rights hands at the Right time…tax efficiently!
We also heard that, in the UK during 2014, £479Bn was held in ISA portfolios…and that 50% of that money was held by UK citizens aged 50 years+. This could be a concern since that money would be liable for hefty Inheritance Tax…whereas if it was invested into a pension pot then this sum would NOT be liable to Inheritance Tax. Food for thought and we will obviously continue to remind our clients of this moving forward.
Finally, we were reminded that our clients should generally consider around 30 years as the period during which they should expect to need to draw money from a retirement pot and should get advice around the appropriate Withdrawal Rate to minimise any potential shortfall later on.