Positive Pension changes

As you are aware there have been some positive pension changes recently. One change is that on death the value of your pension can be passed down the family and as it is outside your estate there is no inheritance tax (IHT) to pay. A flowchart detailing the changes can be found here http://www.ufa-tf.co.uk/newsletter/Pension_options_flowchart.pdf, it is very busy but the key takeaway is you have more flexibility.

 

To give the pension provider the authority to pay the pension to your family members you need to make changes to your ‘pension expression of wishes’. When you took out your pension plan you will have no doubt nominated your spouse, what we now need to do is add your family members.

 

The OMW form can be found here http://www.oldmutualwealth.co.uk/Documents/Literature%20Library/Platform/Collective%20Retirement%20Account/PDF4161-214-1591-Expression-of-wish.pdf. Please print off page one, complete your details including your plan number and your new wishes, not forgetting to sign and date the form. I recommend assigning a minimum of 1% to your children with the rest to your spouse. The ratio can then be adjusted by your executor. Then either scan and email it to ask@omwealth.com or put it in the post to Old Mutual Wealth, Old Mutual House, Portland Terrace, Southampton, SO14 7AY.

 

If you have a ‘final salary’, defined benefit or any other pension that we do not look after, you should also notify the trustees of any changes you wish to make with that plan.

 

As you are updating your pension it might also be sensible to review your will as it may well be out of date. The will is the most important as it takes precedent over the expression of wishes. Also if you plan to make any major changes please include an expression of wishes with the will so that the executer is aware of why you did what you did.

 

If you need to make changes to your will and want to help St Raphael’s Hospice, they run a ‘make your will fortnight’ every May http://www.makeyourwill.org.uk/. If you want to do something quicker Paul Gachet 020-8408-0836 at http://www.ewltd.com/ will come out to you.

 

Do not rely on ‘deeds of variation’ as the Miliband family did; as the chancellor has recently announced a review.

 

As the new state pension starts in 2016 it would be prudent to check how much the state will give you on retirement so you can plan ahead. If you call 0845-3000-168 or 0191-218-3600 with your NI number and the date of your marriage they will post you a State Pension Statement.