Private pension age set to increase
After years of speculation, the government have confirmed that the private pension age will rise from 55 to 57 in 2028. So, those retiring in future will have to wait a couple of extra years before accessing their pension.
CGT – fit for purpose?
Rishi Sunak commissioned a review of Capital Gains Tax during the summer, to find out whether the current system is fit for purpose and to identify simplification opportunities. The Office of Tax Simplification (OTS) published a call for evidence and an online survey. The OTS commented, there have been, ‘several changes to CGT’ over the last ten years and that it ‘may be helpful to consider the tax again in the current climate.’ They will investigate the applicable rates, reliefs, exemptions, allowances and overall scope of the tax. We will update you on any developments.
Fund inflows on the up
Although March saw the highest ever monthly outflow from retail funds, in Q2 UK savers invested more in the quarter than they did in the whole of 2019. Data shows that £11.2bn was invested in funds such as unit trusts and open-ended investment companies during the quarter, compared with £9.8bn in 20191.
1The Investment Association, 2020
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.