NEW ISA limits
UK residents, who turn 50 on or before 5 April 2010, will be able to invest up to £10,200 into Individual Savings each tax year from 6 October 2009, but only once they reach 50, an increase from the current limit of £7,200. Of this new limit, £5,100 can be put into a cash ISA. For younger residents the existing rules remain until 6 April 2010 when the new limits apply to all eligible investors.
Lack of Planning
A recent poll as reported by Holly Cook, online editor at Morningstar.co.uk, provides some very worrying insights. The strongest is that an overwhelming 77% of participants do not have a clear idea of their retirement needs and 74% do not believe their savings plan is set to achieve their financial goals.
State Pension changes
The State Pension age for women born between 6 April 1950 and 6 April 1955 is rising from 60 to 65 between 2010 and 2020. State Pension age will increase for both men and women from age 65 to 68 between 2024 and 2046. Currently men normally need 44, and women normally need 39 qualifying years to get the full basic State Pension. However, if you reach State Pension age on or after 6 April 2010, you will only need 30 qualifying years for a full basic State Pension.
Access to pension cash
For those of us with non State Pension funds who would like to have access to their tax free cash entitlement and /or begin to take income benefits, currently available to the over 50’s, time is running out as after 6 April 2010 the age at which cash is made available increases to age 55.
For further information or advice please contact the Ensors Investment team
