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Did you know that a recent report in the Times indicated that 90% of Final Salary pension schemes in the UK will have a future shortfall. Not great news I am sure you will agree if you have the bulk of your pension sitting with a large corporation in the UK. We have covered this issue before and listed some of the big names who have dropped their final salary schemes because they are not financially sustainable (eg BT, Barclays, Sainsburys, Lloyds to name but a few). You need to know what is happening to your pension and whether you will have a happy retirement or one full of financial uncertainty.

Couple this with the new rules from Mr Brown where “A” Day could have your pension taxed at 55%! - things do not look rosy. However, with a modicum of proper financial planning, you could improve your chances of a happy retirement by

Leaving aside the issues of the precarios nature of final salary schemes, the Pensions A Day legislation has far reaching ramifications. There is now a limit of £1.5m on your pension pot before the Government will charge tax of 55% on everything above that figure. You may think £1.5m is a sizeable sum but let’s assume that you intend to retire on £100k per annum (net of tax). At annuity rates of 5% you would need a pension pot of £2m. This example is used for ease of figures but the 55% is very real and actual annutiy rates at present are much lower which means the penison pot would have to be bigger. Making the pot bigger is now more difficult if everything over £1.5m is going to be taxed at 55% - I hope I am being clear!

There are lots of other issues regarding A Day and we intend to hold seminars and work-shops so you can get your pension house in order. We hope to bring UK expertise into Dubai to cover this topic in more detail and if you would like a pdf on this subject then please let us know. The pension age has risen and if you would like more info on the House of Lords ruling on the treatment of overseas retirees, do let us know.

We do have solutions to this problem and we can give a full overview of your exisitng arrangments including a forecast of benefits your present pension arrangments will yield. We use the largest specialist Pension Trustees in the UK to offer this research - without fee when you use Globaleye. You may not realise that being non-resident and contributing to an onshore pension can actually increase your tax liabilities in the UK. We stress you contact us today and we will offer an impartial overview on your pension plans for a rosy retirement.

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