UTC (UK) Pension Scheme - Member Newsletter 2023

Pension news Changes to pensions tax allowances The Lifetime Allowance (LTA) is a limit set by the government on the total amount of tax-free pension savings you can build up over your lifetime. In its Spring budget, the government advised that

Members should also be aware that scammers are operating as so-called claims management companies and attempting to use ‘subject access requests’ to obtain personal information and details about a saver’s pension arrangements. Please be particularly vigilant if you are approached in this context. Scam tactics include: • contacting you out of the blue • promises of high or guaranteed returns • free pension reviews • access to your pension before age 55 • pressuring you to act quickly. If you are considering transferring your benefits out of the Scheme, please be extra vigilant. While the Trustee can block a transfer if the administrator’s checks raise any red flags, staying alert to scams remains a joint effort. Find out more about scams at www.fca.org.uk/scamsmart Delays to the pensions dashboard The government has announced a further delay to the pensions dashboard project which is now not expected to launch until October 2026. The dashboard aims to provide a single point of reference for members to view information The State pension age is set to rise from 66 to 67 by 2028. The government had considered bringing forward the planned rise to 68 to 2039 (rather than 2044-46) but it confirmed recently that it would stick to the original timetable. The normal minimum pension age (NMPA), the age below which you are not permitted to take your retirement benefits, except in limited circumstances, is also due to increase, from 55 to 57, in 2028. about their pension savings, as well as potentially offer a means of reuniting people with their lost pension pots. Rising pension ages

the LTA (which is currently frozen at just over £1 million) would be abolished completely from April 2024 and the charge for exceeding it would be zero in the 2023/24 tax year. This is subject to the necessary laws being passed. If you are still paying into a pension scheme, the government has also raised the amount of pension contributions you can make in a year that get tax relief. This is called the Annual Allowance (AA), and in April 2023, it increased from £40,000 to £60,000. However, if you are a high earner with an annual income over £200,000, your AA may be reduced by a tapered amount, and it could be as low as £10,000. If you have already accessed any defined contribution pension savings flexibly, you will have a restricted AA called the Money Purchase Annual Allowance (MPAA). From April 2023, this increased from £4,000 to £10,000. Don’t let a scammer ruin your retirement Recent research by the Financial Conduct Authority and the Pensions Regulator found that half of pension savers do not believe that they are at risk of being targeted by a pension scammer. Pension scams can happen to anyone. Scammers can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing. They design attractive offers to persuade you to transfer your pension to them or release funds from it. It is then invested in unusual and high-risk investments, like overseas property, renewable energy bonds, forestry and storage units, or simply stolen outright.


Made with FlippingBook - professional solution for displaying marketing and sales documents online