Savings

Pension decision time for those approaching 50

Changes to the rules next year will affect early access to pensions.

Pensions rule still under debate

High earners were also shocked to hear that not only would tax relief for pensions be restricted from 2011, but that the Government also intends to restrict their ability to contribute this year and next, in the run up to the new rules.

The restriction, however, is much more limiting than was expected, as it is intended to prevent those affected from increasing their pension contributions in 2009/10 and 2010/11.

But the effect of the rules as drafted mean that many taxpayers earning over £150,000 per annum could be forced to reduce their pension contributions this year.

Pensions tax relief measures need to be reconsidered

Pension industry groups are warning that government plans to cut the tax relief available to higher earners on their pension contributions could have an adverse impact on the whole savings and retirement system.

Pension rules may deter saving

Changes to pensions tax relief for higher earners could be counterproductive, it has been claimed.

Long term savings accounts offer improved rates

Savers might have to be willing to tie their money into long term deals in order to enjoy reasonable returns on their investments.

Pension changes could hamper employment flexibility

Reforms to the pension system, planned for 2012, run the risk of adversely affecting the flexibility of the UK’s labour market, it has been argued.

Some high earners could benefit from new pensions tax relief rules

People who earn more than £150,000 will get 50 per cent tax relief on the contributions they make to their pensions for one year.

Savings accounts beginning to offer better returns

After months of poor savings account interest rates, investors may be about to reap the rewards of better returns on their money.

Extra pension tax charges for high earners

A detail in the Budget announcement has revealed that people who earn more than £150,000 a year will have to pay tax on the contributions that their employers make to their company pension schemes.

Budget 2009: personal tax – 50 per cent top rate on income tax

Future tax rises were always likely to be on the agenda as the Chancellor seeks to reassure the international money markets that he has plans laid to reduce the UK’s huge borrowing deficit.

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