Mailings

Tuesday 2 February 2010

Tax year end 2010 - Increase in minimum pension age to 55

As the tax year end is now approaching, this is our usual reminder that all pension contributions should be paid by then to qualify for tax relief in the current year.

Please be reminded that the 5th April this year falls on Easter Monday, so the effective tax year end is Thursday 1st April.

As with previous years we can accept contributions up to Midnight that day.

This year's Annual Allowance is £245,000, but may we also remind you of the new regulations for tax relief on contributions for "high earners", of which we have notified you of recently.

The other regulatory change which takes place on the 5th April is the increase in minimum pension age from 50 to 55. This means that anyone born between 6th April 1955 and 5th April 1960 who has not already fully crystallised their retirement benefits by the 5th (in effect 1st) April 2010 will be affected, as they must wait until they are 55 before they can draw retirement benefits.

Anyone in the relevant age range who is receiving phased retirement will not be able to draw on the unvested portion of their fund until they are 55.

Please therefore ensure that any of your clients who may be affected are informed of this and, should they wish to crystallise benefits before the 1st April, please contact us as soon as possible so that arrangements can be put in hand. We do not propose to contact your clients direct on these points.

If you have any queries, please speak to your usual contact.

The IPS Partnership