savings Archives - WRLO Accountants

10,000 boost State Pension with online payments

WRLO Accountants — Tue, 22 Oct 2024 16:12:30 +0000

More than 10,000 payments worth £12.5 million have been made through a new digital service to boost people’s state pension, HMRC has revealed. People have until 5 April 2025 to maximise their state pension by making voluntary National Insurance contributions (NICs) to fill any gaps in their NICs record between 6 April 2006 and 5 April 2018. The service enables people to check if they have gaps in their NICs record, calculate if making a payment would increase their state pension, and then make a payment if they wish to do so. HMRC data shows: 51% of taxpayers topped up one year of their NICs record the average online payment is £1,193 the largest weekly State Pension increase is £107.44. After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous six tax years, in line with normal time limits. Emma Reynolds, Minister for Pensions, said: ‘We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a […]

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Young people reminded to reclaim government savings

WRLO Accountants — Fri, 04 Oct 2024 19:34:50 +0000

Over half a million young people are yet to lay claim to Child Trust Funds worth an average of £2,212, HMRC has said. Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures. The savings are not held by the government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested. If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: ‘Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible. ‘You don’t need to pay anyone to find your […]

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Savers dangerously underestimating minimum cost of retirement

WRLO Accountants — Fri, 05 Jul 2024 16:58:01 +0000

UK savers are dangerously underestimating the minimum amount needed to retire, according to research from pension provider PensionBee. A survey of 1,000 working-age UK adults showed that 23% were unsure of the total pension pot size needed to achieve the retirement income they desire. Pension Bee said that, according to the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards, a pension pot of £150,000 would only fund an individual’s minimum retirement standard for ten years. Pension Bee suggested that working-age adults could be underestimating the true cost of retirement. 49% of those polled estimated that they would require a pension pot of around £250,000 or more. However, Pension Bee found that there was a lack of clear consensus in regard to desired annual income in retirement. Becky O’Connor, Director of Public Affairs at Pension Bee, said: ‘It’s hard to plan for retirement without an idea of how much you might need, yet most Brits seem to be unaware of – or worse, dangerously underestimate – the true cost of retirement. ‘A good pension pot is one that can provide enough money for the duration of retirement. As this exact amount will vary based on individual circumstances, pension calculators can […]

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