Navigating this requires careful planning to ensure you maximise your earnings
Recent figures from HM Revenue & Customs (HMRC) reveal a startling trend: an increasing number of pensioners are caught in a punitive 60% tax trap[1]. In the 2024/25 tax year, 77,000 individuals aged 66 and over had earnings between £100,000 and £125,140, subject to this alarmingly high effective tax rate. This figure has more than doubled in just three years, demonstrating the significant impact of frozen tax thresholds on older, higher-earning workers.
Impacts on living costs, mortgage, holiday funds, savings and investments
To understand the current economic climate, it is essential to assess the strength of the pound. You might have seen headlines about sterling falling against other currencies, particularly the US dollar. But what does this mean in real terms and how does it affect your personal finances?
A new year often provides a perfect chance to review personal goals and update old habits. This year, consider expanding that review to include your personal finances. For many, managing their finances can seem daunting. However, as with many challenges, the worry is often worse than the task itself, and the most challenging part is simply taking that first step.
The inevitable shift in the approach to intergenerational wealth transfer
Pension savers intending to pass on their retirement funds to loved ones received unwelcome news following announcements in the 2024 Budget. The Chancellor revealed that pensions will soon be subject to Inheritance Tax (IHT), marking a significant change from previous rules that usually protected pension funds from tax upon death.
Reducing your estate’s Inheritance Tax liability for your loved ones
Considering the later years of your life is an essential part of financial planning, especially when it involves how your assets will be distributed after you pass away. Many people think about gifting their dependents or family members an early inheritance. However, this requires careful planning and a solid understanding of Inheritance Tax rules to ensure your wealth is transferred in a reasonable and efficient manner.
