Industry news and views from Panacea and our partners.
Pensions_
M&G: Lighthouse Edition 2
Lighthouse Edition 2 is now available. Explore the latest market insights to support informed client conversations and portfolio decisions.
The Prudential Guaranteed Income Plan
With gilt yields at their highest levels since 2008, now could be the time to lock in attractive, guaranteed returns for your clients.
Fidelity Adviser Solutions: Pension Schemes Bill what you need to know
With the Pension Schemes Bill now finalised and set to reshape the UK pensions landscape, employers and trustees must turn their focus to implementation. From value-for-money frameworks and scheme consolidation to new decumulation duties, the reforms introduce both opportunities and complexity. Fidelitys Sarah Webster highlights the key priorities and practical steps to help schemes prepare for what comes next. 5minute read
Fidelity Adviser Solutions: The simple 4-step guide to securing lifetime income
If youre looking to understand how a guaranteed income solution works on Fidelity Adviser Solutions platform, this short video is a great place to start. It walks you through the essentials in four easy-to-follow sections: what guaranteed lifetime income is, the quote process, income options and blending solutions. 12-minute watch
Fidelity Adviser Solutions: Rewriting the rules: pensions and inheritance tax
Inheritance tax rule changes for unused pensions mean that advisers may need to review retirement income strategies for their clients. Fidelity Adviser Solutions article and guide explore the practical challenges, opportunities and trade offs involved in running down pension assets, managing surplus income and effective estate planning strategies for future generational planning needs. 3-minute read
M&G: Enhanced flexibility for the Prudential Guaranteed Income Plan
The Prudential Guaranteed Income Plan now offers greater flexibility, with term options extended from 5 - 15 years to 3 - 30 years.
M&G: Planning with pensions in the IHT net - a case study
On Demand Event - Join Les Cameron, Head of Technical at M&G, as he works through a real life case study on the effects of pensions being brought into the IHT net and, more importantly, what you may want to do about it.
Fidelity Adviser Solutions: Pension changes for 2026/27 and beyond
This brief overview from Fidelity Adviser Solutions outlines the key developments you need to be aware of including updates to inheritance tax treatment, the rising Normal Minimum Pension Age, potential shifts in State Pension Age, and evolving salary sacrifice rules. It also highlights wider policy areas under review to help you stay informed and prepared for longterm planning discussions. 3minute read
M&G: Accessing the Prudential Guaranteed Income Plan
The Prudential Guaranteed Income Plan provides clients with a secure, guaranteed income stream, lump sum or both - helping managed longevity risk and offer peace of mind, even in uncertain markets.
M&G: Interactive Blending Case Study
This case study shows how advisers can use the Prudential Retirement Account, PruFund, and Prudential Guaranteed Income Plan to help clients plan and manage their retirement income. It highlights practical strategies for each stage of retirement. Download and save a copy to get the full experience, including the voiceover. Download case study >
It's time to tidy up transfers
Platforms were built to modernise financial services, yet advisers still face average transfer times of 11.5 days, with some stretching beyond 40. Thats not progress.
M&G: Blending Drawdown and Annuities: A Modern Approach to Retirement Planning
In todays evolving retirement landscape, the binary choice between income drawdown and annuities is increasingly outdated. For professional financial advisers, the opportunity lies not in choosing one over the other, but in strategically combining both within a single pension wrapper to deliver a more resilient, flexible, and client-centric retirement income strategy.
M&G Wealth: Pensions, death and tax
10am - 23 Jan 25. In this session, Les Cameron (Head of Technical, M&G) takes a walk through the pension death benefit landscape where we've been, where we are right now, and what the future may hold.
M&G Wealth: Les Camerons Big Fat Quiz of the Year
12 Dec 2024. Every year, M&Gs Technical Team answer thousands of questions from advisers and paraplanners across the full financial planning spectrum.
Fidelity Adviser Solutions: Autumn Budget key takeaways for Financial Advisers
Ever since Labour returned to power in July, there has been endless speculation on the areas that may be in the Chancellors sights, which caused many individuals to consider pre-emptive action to avoid possible tax hikes.
Fidelity Adviser Solutions: Will Labour change the State Pension age?
The reason this issue may return to the headlines in the UK in the coming months is due to a delay, ahead of the election, to accelerate the rises
Invesco: A closer look at the proposed Value for Money framework for DC workplace pensions
Explore expert insights as Michael OShea discusses the FCAs proposed Value for Money (VfM) framework for default DC pensions.
M&G Wealth: Pensions - why higher rate tax payers (don't) always get 40% tax relief
15 August - 10am: On this event, Mark Devlin, Senior Technical Manager will look at how tax relief operates for individuals, third parties and employers. He'll also talk through case studies which will help to explain how better outcomes for clients can be achieved.
Fidelity Adviser Solutions: Pension death benefits under the LTA replacement regime
One of the questions to pop up on Fidelity Adviser Solutions Pension Forum relates to whether pension death benefit rules have changed under the lifetime allowance replacement regime. Paul Squirrell clarifies exactly what the new rules say depending on the clients age at death. He also confirms how payments from a beneficiarys flexi-access drawdown fund are treated.
Fidelity Adviser Solutions: The £287,560 cost of matching the State Pension
The State Pension has become an early battleground in the upcoming General Election, with the major parties diverging on their plans for the old age payment. While both Labour and the Conservatives have pledged to keep the Triple Lock, the incumbent Conservative Government has promised to add another protection to the State Pension.
Fidelity Adviser Solutions: A new smoothed innovative pension solution
Fidelity Adviser Solutions are committed to helping provide flexible retirement planning options for advisers and their clients, underpinning a more certain journey to and through retirement. They have enhanced their retirement proposition with the launch of a new smoothed fund, available for investment on their platform through the Fidelity Pension.
M&G Wealth: Quite simply the new pension allowances
It seems like only yesterday the Chancellor stood up in parliament and announced the abolition of the Lifetime Allowance (LTA). From 6 April well be in the new world of Lump Sum Allowance and Lump Sum and Death Benefit Allowance. No need to worry about what you need to do by 6 April as that date will be in the past. Things have gotten simpler.
Pensions: still the first port of call for retirement savings
Over recent years, there have been many presentations that have extolled the efficacy of ISAs compared to pensions in terms of tax. However, as Fidelitys Paul Squirrell explains, we shouldnt hoodwink ourselves that someone should be paying into an ISA when they still have pension allowances remaining.
Pensions are now even more attractive to those saving for retirement
The appeal of saving into a pension became much greater in March 2023 when a number of allowances were boosted in the Spring Budget. However, the biggest game-changer was the removal of the lifetime allowance tax charge for this tax year and the replacement regime coming in April. Fidelitys Paul Squirrell explains why this change requires a complete rethink on the approach to saving for retirement.
The LTA replacement regime explained
The lifetime allowance (LTA) replacement regime comes into force for pensions on 6 April 2024. This sees the introduction of three new allowances.
New LTA allowances
The LTA has been replaced with three new allowances. Read the summary based on our understanding of the draft legislation and other related HMRC announcements as at 18th December 2023.
How to build decumulation strategies around your clients
In this webinar LV= explore why we've seen a resurgence in annuities, what clients are now looking for in retirement, delve into the behavioural science behind investing, and bring to life their blended solution (which combines a fixed term annuity with smoothed investment) through client case studies.
Pension changes from 6 April 2024
The new pension tax rules come into effect from 6 April 2024. To illustrate these changes read as LV= outline how the new rules work in practice.
Abolition of Lifetime Allowance
Extensive change to legislation is needed to abolish the LTA, and for those working in the industry there are some important features. However, most individuals will find little change to their available tax-free cash or how their pension benefits are taxed.
More than three quarters (77%) of women don't know how to take money from their pension in a tax efficient way
LV= research findings show that women are at least 20% more likely to say they don't know how to stay financially secure in retirement, and 77% dont know how to access retirement funds in a tax efficient manner. This presents an opportunity for advisers to suggest a blended solution that could ease their financial planning worries.
Update: 'Replacement' of the lifetime allowance
Following an initial Policy Paper and a Draft Finance Bill issued last summer - and a resulting consultation period - further draft legislation was released in November 2023. This has provided more clarity on the new rules and the transitional arrangements. In this postcard, Fidelity's Paul Squirrell summarises some of the announcements made in the draft legislation and analyses what this could mean for financial planning.
What can future generations expect from retirement?
The landscape of people's wealth is changing. Today's retirees still have generous pension provision, and plenty of accumulated housing wealth to fall back on. But for future generations, the outlook will be quite different.
A pension pot for life, not just for...
We've had a few days to start to digest chancellor Jeremy Hunt's plans to consult, albeit with no timescale (especially with the next election on the not-so-far horizon) on what he calls his new pot for life pension model. A potential game changer however, for our partner audience and IFAs.
M&G Wealth: The 2023/24 LTA changes
A short video in a series covering the abolition of the LTA from the 2024/25 tax year. This video focuses on the first step of this, which was changing the taxation of LTA excesses for the 2023/24 tax year.
Fidelity Adviser Solutions: Do these numbers put the State Pension triple lock at risk?
Official numbers published in September could have a very big impact on the future incomes of pensioners. Thats because the September number is used to work out State Pension rises under the triple lock - the governments promise to raise the full State Pension each year by the highest of either inflation, wages or 2.5%.
Fidelity Adviser Solutions: The NMPA and protected retirement ages
The Normal Minimum Pension Age (NMPA is currently set at age 55 and is due to increase to age 57 in April 2028. However, clients may have various forms of protected retirement ages in place all with associated conditions attached to them.
Prudential: It's the season for pensions savings statements
The leaves on the trees will be starting to go brown and disappear for the winter (aside from evergreens obvs!), but its also the season that clients may start to receive Pensions Savings Statements (PSS) for the 2022/23 tax year.
Fidelity Adviser Solutions: £205K to replace - why clients really need a full State Pension
The income from the State Pension is extremely valuable and very expensive to replace. Latest annuity prices show that replacing the current maximum State Pension would cost £205,430. Whats more, an individual would need £265,005 of pension savings in drawdown to recreate the same amount (assuming a 4% withdrawal rate). It therefore makes sense for most clients to maximise the income they receive from the State Pension.
LV= Major SIPP and SSAS providers ready to accept LV= smoothed funds
Download LVs guide to learn which major providers are ready to accept TIP investments.
LV= Smoothing as an alternative to cash
The LV= Smoothed Managed Funds offer clients an alternative to holding cash, with their smoothed returns and low risk scores. Available to SIPP and SSAS clients via the LV= TIP.