With the start of 2015 Sovereign enters its 34th year of trading and we look forward
to an exciting and challenging 2015 – particularly with the changes in pensions and
the coming Election!
2014 was generally a more stable year than the previous one with the UK economy
performing better than most. From a financial services viewpoint 2015 will really be a
Year of the Pension. The number of changes to pension rules due to take place from April
2015 are record breaking. They include removing many of the access rules to pensions
so that most individuals will be able to reach into their pension and take out as much as
they want. In another major change, people dying before age 75 will be able to leave their
pensions to anyone they want – and the beneficiaries will receive the lump sum or income
free of any tax!
And pensions are also a focal point of mortgage affordability calculations – with many
lenders going where previous lending approaches have not gone before – reducing the
amount you can borrow based on the amount of pension contribution you make, i.e.
treating it in the same way as a loan payment or credit card payment would be dealt with.
Pensions in 2015 will be the focal point of most smaller businesses as they feel the hot
breath of The Pensions Regulator on their neck. Tens of thousands of businesses will have
to deal with the compulsory Auto-Enrolment Workplace Pensions as they hit their Staging
Date (start date) in 2015, and hundreds of thousands of small businesses in 2016!
