Retired face penalties for deferring pension
‘THE government’s new scheme to allow those approaching retirement to defer their state pension and enjoy an enhanced higher pension at a later date or an attractive lump sum could come with a nasty sting in its tail, it has emerged.
One-third of the extra money will be clawed back from many retirees through lost pension credit, Scotland on Sunday has discovered. Alternatively, the elderly could find themselves paying punitive rates of tax.
Charities for the elderly and tax experts have warned anyone thinking of deferring their pension to exercise caution, because measures promising that big lump sum payments of up to £70,000 would not attract higher rates of tax were never implemented.
The relevant clauses in the Finance Bill were quietly dropped when the legislation was rushed through Parliament before the House broke up ahead of the election.’
Read more at Retired face penalties for deferring pension
Recent Entries
- Record number of savers look to stash cash in tax-free Isas
- Savings targeted by 43%
- Personal finance advertising lagging behind consumer internet drive
- £1 a week earns 14 years of freedom
- Third of Scots have no more than £100 put away
- Debit accounts can help youngsters learn lessons about money
- £130,000 - the cost of life as a pensioner
- UK set for strong mortgage revival
- Brits break personal finance pledge
- Bankruptcies in Scotland soar by 50%, but worst is still to come