Oyster's Financial Magazine May/June 2023
Welcome to our latest edition. In this issue, Chancellor Jeremy Hunt’s first proper Budget 2023, on Wednesday 15 March, brought some welcome but unexpected changes to pension tax. Britons can now expect significant changes that will affect their retirement savings. On page 10 we consider how these changes could impact on your pension and secure your retirement plans.
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The most significant change was the abolition of the pension Lifetime Allowance (LTA). If you’re an investor looking to maximise your Individual Savings Accounts (ISA) returns, it’s worth considering investing your ISA allowance as soon as possible each year, as soon as it becomes available on 6 April. Not only will this help ensure that your money is protected from taxes right of the bat, but it also means that your investment has more time to grow in the market. This can result in a bigger ISA pot in the long run. Read the full article on page 06.
April brought a host of changes to the UK’s tax regime, with some thresholds for taxes such as
additional rate Income Tax being lowered while others are increased, such as Corporation Tax. However, the Inheritance Tax (IHT) nil-rate band has remained stagnant at £325,000 since 2009, despite the meteoric rise in property prices over the same period. On page 11 we look at how this has resulted in an alltime high of £6.1bn being collected in Inheritance Tax in 2021/22.
Financial planning is a crucial step towards achieving financial freedom and security. According to a recent study, UK consumers who receive professional financial advice can expect to retire on average three years earlier than those who do not seek professional advice. Turn to page 13 to see the findings.
Here are just a few of the topics covered in our most recent addition:
Mind the State Pension Gap - Knowing how much you'll receive is vital for planning your future finances.
State Pension - How much has the 2023/24 State Pension increased by?
Early Bird Investors - Does the early bird get the ISA worm?
More People Choosing Semi-retirment For a Variety of Reasons - Two in five over 55's plan to gradually pahse out working life before state pension age.
Giving While Living - What will your legacy look like?
Professional Financial Advice Matters - Making informed decisions about how to best allocate your resources.
Financial Wellbeing - More than 24.5 million people are financially disengaged.
As always, if you have any questions about anything in our magazine, please do get in touch by email on enquiries@oysterfinancialplanning.co.uk or call us on 0238 848410
