Pensions News

Pensions independence 'has tax benefits' - 13/12/2007

Excellent! Very Good Good Fair Poor

Why not be the first to rate this article?

An independent financial adviser has highlighted the tax benefits available to couples who adopt independent approaches to pension planning.

Lisanne Mealing, director of MDM Associates, said that if both partners invest in separate pensions they can take advantage of separate tax allowances.

"You're losing out on some pretty good tax allowances if you only fund on one [partner's] side and not the other," said Ms Mealing.

She added that splitting income in retirement also has tax advantages in terms of income payments, so couples intending to follow this option are "taking full advantage".

The benefits of splitting pensions have implications for inheritance tax also, the expert remarked, explaining that if consumers are able to demonstrate their independent accumulation of assets then there is less of a case against double allowances or asset transfers prior to death.

A recent report published by the Fawcett Society found that while young women save almost as much as men and have lower levels of debt, they are more likely to be in arrears on bills or credit card repayments.

According to the figures, the saving rates of mothers fall by 11 per cent in the first year of parenthood - the corresponding figure for fathers is four per cent.

© Adfero

Back to Index