pension related questions

2023’s Most Asked Pension Questions



Posted on: 22nd January 2024

Looking back on 2023, it was another challenging year for the public and financial security. However, looking back on what some of the main pension related questions of 2023 entered into Google search engines, our independent financial advisers Cheshire can start 2024 with the answers that can help you to get a better starting ground on the year ahead and your pension plans.

Here are the questions and answers to the most searched pension advice Manchester for 2023.

Are Pensions Taxable?

A pension is treated as earned income, which makes it subject to income tax. However, you must remember that you can usually withdraw 25% of your pension pot as a tax-free lump sum as soon as you turn 55.

Of course, with rules and regulations changing over time, you need to have qualified advice from independent financial advisers Manchester to know of any changes in tax regulations.

Is a Pension Worth It?

A pension will always be worth your investment. Paying into a workplace pension is a tax-efficient way to better prepare your finances for when you eventually decide to retire.

Your employer is obliged to top up your pension pot with a contribution of at least 3% of your monthly salary as an added bonus, so do not opt out of any workplace pension if it is mentioned as an option by your employer.

Is a Husband’s State Pension Inheritable?

If your spouse dies, you will be eligible to inherit at least part of their pension plan. However, you must have been married before April 6th 2016.

Also, your partner must have reached state pension age before the same date or would have reached it in the case of their passing. If you remarry before you reach state pension age, you will not be eligible to inherit your partner’s pension.

Can You Cash a Pension When Needed?

You can cash in 25% of your entire pension savings when you turn 55 as a tax-free lump sum. Following that, you can continue to withdraw the remaining 75% but with standard tax rates applied and any withdrawal charges outlined by your pension provider.

As to whether pensions are still considered safe, all personal pension pots are protected by the Pension Protection Fund (PPF), which covers up to 100% of your payments should your employer go bust.

There are many pension related questions and if they are a worthy investment for your future. If you would like to get answers to your questions on pension advice Manchester, contact the best independent financial advisers UK at Haven IFA today.