Independent financial advisors Birchwood Investment Management Ltd, based in Welwyn, are warning individuals about the major changes to pensions announced in the Autumn Statement.
The Chancellor George Osborne announced plans to raise the state pension age to 68 in the mid-2030s and 69 in the late 2040s. He also announced that in April 2014, the state pension allowance will rise by £2.95 a week.
During the Autumn Statement, which Mr Osborne said laid a “platform to secure the economy for the long term”, plans were also confirmed a rise in the income tax annual allowance to £10,000 from April 2014.
It was also confirmed that a married couples and civil partners’ tax break will be introduced from April 2015. This will allow £1,000 of personal allowance to be transferred from one spouse to another, however this is on the proviso that neither is a higher-rate taxpayer and one is earning less than the personal allowance.
The chancellor has previously announced an increase in the maximum allowance that could be saved in a tax-free Individual Savings Account (ISA) from £11,520 to £11,800, although this will need to be confirmed, as the level could be increased further.
Other measures introduced in the Autumn Statement included an extension in the enterprise allowance to help 50,000 new start-ups, and a new social enterprise relief available from April 2014.
Stamp duty on shares purchased in exchange traded funds was also abolished.
Wesley Fox from Birchwood, said: “While the Autumn Statement looks to be good news for small and medium sized businesses, there is little change in the statement for investors or potential investors.
“Pension changes were however at the heart of the statement, as the Government looks to balance the books with an ageing population, although predicted changes to the amount of Tax Free Cash that could be taken remains untouched.
“I would urge all pensioners, potential investors and current investors to pick through the detail to see if there are any potential benefits to them where the devil will be in the detail.”
