Having recovered from their recent dinner date with Nigel Farage, Gogglebox stars Steph and Dom popped down the pub in London for a chat with pub-goers about their future plans and the impact the pension changes will have in April.
With less than 150 days to go until 2015’s big pension changes land, a quarter the UK’s 50-65 year olds are still unaware that pension reform is happening, while 84% of adults getting near to retirement are unaware of their pension’s value. 86% of people also didn’t know that a pension can be passed on tax-free if you die before the age of 75.
Steph joked: “I’m not even sure if I’ve got a pension. I’m still 12 in my head… It’s flipping scary because we don’t really understand it!”
Following their chat, Dom commented: “I think we’ve learned a lot actually.”
The pension rules will change on 6 April 2015. Are you ready?
Watch the video, titled ‘The Next Round with Steph and Dom’…
Here are 5 things you need to know about the pension reforms:
1. From 6 April 2015, you can decide how you take income from your pension savings, opting either for an annuity (a guaranteed income for life) or a drawdown (where you’re able to start, stop and change how much you take out).
2. If you’d rather, you can also start with flexible income and then opt for fixed income at a later date.
3. The pensions death tax of 55% will no longer apply and some people will find that their pension savings are passed onto their loved ones tax free (if they die before the age of 75).
4. In future, you won’t need to retire and quit work before you can begin accessing your pension savings.
5. Your Will doesn’t usually have any control over who inherits your pension – make sure your Beneficiary Nomination is up to date as this helps to show your preference.
This post is sponsored by Standard Life.