Is getting to a certain age so bad?

When I’m not working away at people’s accounts I like to run on the Pennine moors, the truth is I’m fitter than when I was 20 years ago.  I kid myself that I’m not getting any older, after all I can run further and faster than ever before.  But then the reality hits.  I just can’t read print if it’s in too small a font and the hair that used to grow on my head sprouts out of my ears!  There must be some advantage to being a certain age.

Say what you want about George Osborne, but he gave us something to feel good about as we age….pension reform. So what’s the pension reform all about and how can we benefit from it?

In summary the huge tax advantages of pensions will be combined with much greater flexibility.

You’ll be able to access the funds, as now, from the age of 55 – just 6 years time for me.  A 30 year old would need to wait 25 years, for this one purpose, so much better to be old!!!

You’ll be able to take your pension money when you choose without the bossy government telling you what to do.

You’ll be able to do meaningful inheritance tax planning. Using pensions in this way gives you access and control of the funds but because the assets are held in trust you may be able to keep them out of your estate.  It will no longer be a requirement to buy an annuity so the funds can out live you.

You get full income tax relief when you put money into a pension, and 25% of this money will never be taxed.

Your pension fund can buy your commercial premises.  If it buys them from you, it can release a lot of cash for you personally, if a landlord owns your property getting your pension to buy it means every rent cheque increases your pension.

My father said to me 40 is the old age of youth, 50 is the youth of old age.  So next year I’m 50 and I can look forward to….old age, oh well at least I can do some good tax planning.  As an accountant that gives me a warm feeling inside.

James Sheard

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