Pension charges headache likely for more Britons
30th June 2021 12:02
by Rebecca O'Connor from interactive investor
Commenting on HMRC revised figures, our head of pensions and savings warns that more people could face unexpected charges.
Commenting on revised annual and lifetime allowance figures published by HMRC this morning, Becky O’Connor, Head of Pensions and Savings, interactive investor, said: “The government figures show clear rises in the number of people contributing more than the annual allowance and also the total value of Lifetime Allowance charges in recent years.
“Charges for exceeding allowances are proving an effective revenue raiser for the government, but a major headache for those who find they have to pay them.
“The freezing of the Lifetime Allowance, to many, might seem a niche concern of wealthy people. But the likelihood is that as with house prices and inheritance tax, the value of pension investments will increasingly drag people who might never have expected to be affected into this liability over the coming years.”
***Case study available on request***
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.