Where can I get more information or advice?
The Pensions and Retirement Planning section of the Government’s website at www.gov.uk/browse/working/state-pension contains a wealth of information about state pensions and various benefits that may be available depending on your personal circumstances.
It can help you:
Check when your state pension is payable
Check the rules on deferring payment of your pension
Get a state pension forecast
Trace previous pension rights
Find out about other age related or means tested benefits, for example, pension credit or winter fuel payments
You can also ask MoneyHelper for guidance and support. They’re an independent non-profit organisation providing free information, advice and guidance on the whole spectrum of pensions, including state, company, personal and stakeholder schemes.
For more details, you can visit their website at www.moneyhelper.org.uk
GMP is the minimum pension that schemes had to provide as a condition of being contracted‐out of the State Earnings Related Pension Scheme (SERPS, a type of additional state pension) from 6 April 1978 to 5 April 1997.
If your EAPF pension includes a GMP, the pensions increases applied to your pension in April each year may be calculated differently. More details on increases to your GMP can be found in our factsheet called ‘Pension revaluation - A guide for pensioner members’ at www.eapf.org.uk/resources/publications
You’ll have an individual personal allowance that governs the amount of income you can receive before you have to pay tax. Each year you’ll be given a tax code by HM Revenue & Customs (HMRC) which takes account of your own particular allowance.
Income from most sources such as salary, pension, and investment income for example – is paid to you after tax has been deducted. In such cases, tax is said to have been deducted ‘at source’.
Your tax code and allowances may change depending on your age and your total earnings.
It’s important you check your tax code each year. If any of the details are wrong, or you believe you should be receiving additional allowances, you should immediately inform your tax office.
Details of your tax office can be found on your latest tax code notification or a recent payslip. Always quote your National Insurance number when contacting the tax office.
HMRC’s website at www.hmrc.gov.uk has information about tax and personal allowances and other tax charges such as capital gains tax (CGT) and inheritance tax.
Taxation is a complex area. As your circumstances change, your personal tax situation may also change and it’s important you regularly check where tax savings could be made.
Such tax planning may involve some of the following:
Using all your income tax allowances each year.
Using tax free investments (such as ISAs) if appropriate to your circumstances.
Transferring assets between you and your spouse to reduce your income tax liability (particularly where one spouse is a higher rate taxpayer).
Good financial planning is important if you want to make the most of your finances in retirement. Tax planning, appropriate choice of investments and budgetary control may all be areas where it’s worth considering taking specialist advice.
If you decide to see an independent financial adviser (IFA), there’ll be a cost for your adviser’s service. Your adviser will provide you with full details of the costs involved depending on the service you require.
For details of IFAs in your area, please go to www.unbiased.co.uk
For more information to help you decide if you need professional advice, it may be worth taking a look at the MoneyHelper website at www.moneyhelper.org.uk
