Technically the ‘guarantee’ period of an annuity would fall outside of the estate if left at the discretion of the annuity provider.
An annuity with a 15/20/30 year guarantee period would either be paid to the annuitant or on last death paid to beneficiaries but outside the estate.
The capital value is not lost.
Income tax is still payable by either annuitant or beneficiary but no IHT.
But equally, opportunity cost and flexibility is lost.
This could be a viable proposition for some with a degree of protection.
All depends on personal objectives and tax priorities.
Interesting times ahead from 2027… 🤔
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Very interesting to see where the majority of tax is derived...
...and the tricky position that Rachel Reeves finds herself when trying to find areas that she can derive significant tax revenue from, given the areas that she has stated will not be increased.
Fiscal drag is guaranteed!
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💸 Figures out today from the Office for National Statistics (ONS) showed that annual consumer price inflation (CPI) met the Bank of England's target of 2.0%.
The first time it has hit target since July 2021.
Obviously prices are still going up... but just not as fast as they were.
10 - 1
Not a huge surprise given the complexity involved in reintroducing the Lifetime Allowance (LTA).
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Hopefully this 34 minute video should help you!
It’s available now showing you how to build your very own cashflow/retirement income model, stress test it and work out your capacity for loss using Excel!
Let me know how you get on in the comments section! 👍
Hopefully see you there.
watch video on watch page
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There are some fantastic cash flow modelling tools out there in the marketplace but they are either adviser use only or fairly expensive.
In today's video, available from 16:30. I'll show you how to make your very own cashflow model simply using Excel, stress test it, work out your capacity for loss and make some nice graphs. 😊
Do let me know how you get on in the comments! See you then. 👍
Ed
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🎈All important CPI number out today and it’s an increase in the 12 months to Sept 22 of 10.1%.
The next test of the Government is whether the Triple Lock is maintained or not… if it is then it’ll be an increase of 10.1% from next April… if it isn’t then it will be highly controversial? 🤔
10.1% would take the full New State Pension to £10,600 p.a.
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CPI at 9.1% and a Bank Rate at 1.25%, its a negative real return of 7.85%... can the BOE get in front of inflation??
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🙂 Sir Steve Webb former Pensions Minister has kindly accepted an invitation for a chat and Q&A with your questions relating to pensions and his favourite topic, the State Pension.
He helped design and legislate the New State Pension along with playing a key role in pension freedoms and oversaw the implementation of auto enrolment. He knows pensions!
⭐Let me know should you have any specific questions , this could be on:
Qualifying earnings, contracting out, sustainability, basic vs new state pensions, state pension on death, under payment problems, auto enrolment, contribution levels, missing years etc etc.
🎥 We'll record the video end of next week and I'll aim to have it uploaded on Sat 29th Jan.
Information on Sir Steve can be found here:
www.lcp.uk.com/our-experts/s/steve-webb/
en.wikipedia.org/wiki/Steve_Webb
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Chartered Financial Planner with over 15 years experience in financial services.
Home is Berkshire with my wife and daughter having lived and worked in London for a number of years.
DISCLAIMER: All of my views are my own, and not representative of any company. Any personal opinions, ideas, and tips represented on this channel should not be seen as financial advice or a recommendation to take any specific course of action.