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Pensions

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Families rush to set up trusts to cut inheritance tax: How they work and why the wealthy

Only half of us receive the full new state pension. But there's one really easy thing that you can do to make sure that you get as much as possible.

Where is the best place to invest your pension? Holly Mackay, of Boring Money, has tried out all the major providers and shares the seven rated as her best buys for 2026.

Can my daughter inherit my local government pension as I have nothing else to leave her?

You can believe it or not, but ­regular saving into a pension from an early age can make you richer in retirement than you ever dreamed possible.

Savers who use a Lifetime Isa to build their retirement pot will bear the brunt of changes being considered by the Government to the Lifetime Isa.

Ask a money expert: Get help with pensions, consumer problems, tax, mortgages and more

Can you claim? Benefits for older people

ASK STEVE WEBB A PENSION QUESTION

Can I still leave my pension to my daughter under new inheritance tax rules? STEVE WEBB
My husband and I have made mirror wills, leaving everything to each other. However, I have a private pension which I haven't taken yet, and on this I nominated my daughter as the beneficiary. When the law changes next year and pensions are included in the estate, will the pension provider honour my wishes or will they follow the will? Also, if I die before my husband and still haven't touched my pension, will my daughter get this and how does this work as far as inheritance tax is concerned?

Former Pensions Minister Steve is This is Money's Agony Uncle. Here's where you can check out all his previous columns to see if any involve issues affecting you.

This is Money's star agony uncle Steve Webb receives many questions on private pensions. We've compiled his columns on 12 frequently raised topics.

Steve receives more questions about the state pension than anything else, and we've compiled his columns on the most frequently raised topics here.

Reverend Philip Stamp was sure he remembered saving into a pension during his days before the priesthood, when he worked at a brewery in the 1970s.
MORE PENSIONS NEWS AND TIPS

Warm Home Discount is extended beyond 2026: Here's who is eligible for £150 energy bill

The High Court has ordered an urgent two-day judicial review of the Chancellor's plans to hit family-owned enterprises with death duties.

Campaigners and Labour MPs voiced fury after Work and Pensions Secretary Pat McFadden announced that a review had confirmed payouts are not required.

Why must I fill in a self-assessment tax form when other people are let off?

Fathima Faleel (pictured) came from a culture where pensions weren't mentioned. Now she faces a desperate race to save enough for her future.

It is the first time NS&I has changed the interest rates on these savings accounts since March 2025.

Can I gift my daughter my house to beat IHT and live there rent-free after seven years?
If we gift my house to our daughter and continue to live in it, I understand we pay full market rent. After seven years, do we have to continue paying full market rent to continue living in the property, or can we stop paying?

HMRC stamp duty investigations on the rise as officials snoop on families they suspect of
HMRC investigations are on the rise after Angela Rayner was caught having not paid the correct amount of stamp duty last year. Reports suggest that HMRC has intensified its scrutiny of property transactions.

Bereaved families face 'impossible' deadline to stump up inheritance tax on pensions

Pension tax relief saved Britons an estimated £32.3bn in 2024-25, an analysis of official figures by Hargreaves Lansdown shows.

The lives of two Bond holders are transformed on the day before the first working day of every month, when NS&I personally delivers the news.

How to make downsizing pay off: Patsy and Linda say they've never looked back. How to do

I'm all for parents - and grandparents - doing their bit to demonstrate to kids and grandchildren the value of long-term saving.

EXCLUSIVE

More than four in five people thought the value of everyday items was too high in a test by a probate and chattel valuer.

Why men end up with four times more in their pension pots by the age of 60

If you're looking to open or transfer a pension, Interactive Investor is a good option and cashback can boost your pot. Find out whether it's worth taking up the deal.

As older savers and investors become less willing or able to manage their money, much of that capital is inactive, not invested optimally, vulnerable to fraud or frozen by the banks.

My secret weapon for winning care home funding worth £25k for my elderly mother - and how

They all pay a pittance - at best just 1.51pc - despite the Bank of England base rate standing at 3.75pc.

Savers' cash pots have been eroded over the last two years by high inflation, but there are 1,406 savings accounts paying an inflation-beating rate.

Property prices are dragging more families into inheritance tax: Housing wealth now makes

I am 83 and recently tried to open a savings account. The bank said I couldn't as I don't have a passport or photo driving licence, nor access to a smartphone.

If you have no idea whether you are saving enough to just scrape by or if you'll enjoy a prosperous retirement, you are far from alone.

I must pay income tax on my two tiny private pensions: What do I need to do? HEATHER

Millions risk being slapped with £100 fines if they are unable to file accounts before the end of January deadline - even if it is through no fault of their own.

My state pension is almost double the £11,973 that most people receive. It's all thanks to some key tricks that not many pensioners know about.

Is 2026 a good year to retire? Here's what you need to know before taking the plunge

Can you help 20 retired lawn bowlers who went to the Algarve on a bowling holiday last spring? We booked through Bowling Abroad.

NS&I has kept the Premium Bonds prize rate at 3.6% since August. Meanwhile, we've had two cuts in the base rate, from 4.25% to 3.75 %.

It was a grey and rainy day in 2014 when Katie Donegan's husband Alan asked her what she 'really wanted from life'.

Here's a confession. Somehow, despite having written about money and business for three decades, I don't have a financial adviser.

Cold weather payments for benefit recipients in hundreds of postcodes - is yours on the

National Savings and Investments yesterday slashed the rate it pays to savers signing up for its fixed-rate bonds - but I still think they're worth a look.

Georgie Frost, Lee Boyce and Simon Lambert discuss the essential building blocks for taking control of your finances. Plus pubs, bank shares and zero bills homes.

Grieving families turn to crowdfunding funerals to deal with soaring costs - as even a

The number facing a 'simple assessment' tax demand has surged as more breach the frozen £12,570 threshold.

When Linda met her soulmate, John, it was like the storyline of a romcom. They were just neighbours until 1999, when a twist of fate brought the pair closer together.

How to avoid your pension being dragged into inheritance tax net

Savers are piling money into cash Isas at breakneck speed to avoid paying tax on their interest.

The goal for many adults is to retire at 60 or even younger. But leaving the workplace early takes planning, guts and perseverance. Fail to and you run a real risk of running out of money.

How to boost YOUR state pension - and get up to £66,000 more in old age: These are the

Those who need to submit a self assessment must do so by 31 January, but the process can sometimes be confusing.

Local authorities spend around a quarter of the council tax they collect on pension contributions for staff.

Pensions in 2026: What you need to know about state pension age rise to 67, a brewing tax

The Chancellor has rejected calls for a 'pensions tax lock' - a commitment not to reduce the amount people can withdraw from their pots tax-free.

Homeowners saw rates go down this year, as the base rate fell four times. Does 2026 hold further cuts from the Bank of England - and what influences this?

Six most important pension questions of 2025 answered by STEVE WEBB

Although money resolutions will not be to the fore on New Year's Eve, I do have a number of personal finance 'wishes' for the year ahead that I would like to share...

Heather has fielded questions about accidental landlords, setting up a trust for a vulnerable adult, and avoiding inheritance tax if you own a listed building this year.

The seven steps rich households are taking next year to maximise their cash... and why you

On this final 2025 episode of the This is Money podcast, Georgie Frost and Simon Lambert take a quick ride through this year and what it meant for our finances.

After the barrage of tax hikes on workers, landlords, savers and homeowners this year, it is now even harder to hold on to your hard-earned cash without losing chunks to the taxman.

My pension firm 'blocked' me from moving £350k retirement fund overseas

From next April, 100% agricultural property relief will stay for the first £2.5million of combined agricultural and business assets to help protect family farms.

Bars face an average hike of 15% in business rates next year, costing them an extra £1,400, UK Hospitality analysis shows.

Millions of workers make this little-known but costly pensions mistake - this very easy

EXCLUSIVE

As many as a fifth of those who did take action now regret what they did with their money, St James's Place said.

The collapse of life insurance company Equitable Life happened 25 years ago this month but is still casting a long shadow.

My uncle has been in a care home for decades. Here's how we secured £1,000 a month off his

The NHS offers full funding for people requiring 'continuing healthcare' with complex care needs.

Freetrade is improving its platform in 2026, which should help pension investors save more in fees. Here's what's changing - and how it compares with rivals.

Why giving your grandchildren £50 for Christmas could leave their parents with an enormous

An estate agent has pinpointed a new trend known as the 'Roger' - a parent of a small child who is 'reliant on grandparents and equity release' to make ends meet.

Halifax, Santander and Lloyds all have savings accounts so shameful that I urge you to check if you hold your money in one - and if so move it straight away.

Hampshire and Isle of Wight the luckiest spots this year to win £100,000 Premium Bonds

As of December 1, the Financial Services Compensation Scheme limit will rise to £120,000 from the current rate of £85,000.

Almost a quarter of the population of the UK hold Premium Bonds with the hope of becoming a millionaire in one of the monthly prize draws.

Now state pension top-up REFUNDS go missing too: Savers left waiting months for money owed

EXCLUSIVE

Retirement savers have been forced to turn to Facebook groups for vital information about their pension savings, one of the nation's biggest providers warns.

There's no doubt that 2025 will go down in history as the year that artificial intelligence (AI) became entrenched in our day-to-day lives.

More families are using a trust to protect wealth - but how do you unwind one?

The notion that millions of people can manage without access to proper financial advice is, frankly, for the birds.

A battle has broken out at the top of the fixed-rate best buy tables as banks and building societies vie for your cash.

Five steps to protect your pension after Rachel Reeves' salary sacrifice tax raid in the

Rachel Reeves has guaranteed younger pensioners a tax handout - while retirees over the age of 75 have been excluded.

When you walk down the aisle with the love of your life, you might dream of a beautiful home, large family - and growing old together care-free. But getting divorced can throw your future off course.

Sick of sky-high taxes and dreaming of retirement abroad? The expert guide to the

Sipps give you control over your pension investments. The best Sipp provider will be low-cost, while offering what you need to reach your goals. See our top picks.

Savers in their droves were panicked into pulling tax-free cash out of their pensions before the Budget for fear of a clampdown on the perk.

Why workers earning £52,000 will be the hardest hit by tax raids

There's one particular job in which you can bag an extra £10,000 a year of income in retirement in just 12 years of work, analysis for The Mail on Sunday has found.

With the Chancellor adding more than £20billion to tax bills in her Budget last week, households across the country will be feeling the squeeze.

Households on the hook for £203,000 each to cover cost of gold-plated public sector

Evidence has been stacking up confirming the damage that the Chancellor inflicted on the long-term savings plans of hard-working people in the run-up to last month's Budget.

The most likely impact is lower employer contributions overall for staff pensions by those paying in more than the minimum, says the former Pensions Minister.

Plan to spare pensioners £58 income tax 'risks being unfair and unworkable', says Steve

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HOW TO RETIRE IN RICHES
 

How to invest your pension in drawdown

Late in working life, pension savers typically see their pots shifted out of stock markets and all or part way into bonds. Here's what you need to know about pension lifestyling...

Investors can rack up big losses early on and never make them up if they aren't careful. People who persist in taking an income can pile up future problems.

How to work out and pay inheritance tax: You get just SIX MONTHS to stump up death duties

If you are new to investing, and feel lukewarm at the prospect, one easy and potentially lower cost option open to people with a work pension is to top up investments already held in their retirement fund.

Turning pension funds into an income is among the most important financial moves you will make in your life. What help will your work pension scheme provide?

How to squeeze the most out of your work pension

How do I apply for NHS CHC to cover my care bills?
James Urquhart-Burton, head of continuing healthcare claims at Winston Solicitors and an expert in care funding, explains how to make an application for yourself, or a loved one. It's never too late to ask for an assessment of eligibility, but you will have to be proactive, he says.

How do you appeal if your application for NHS CHC is refused?
Getting your or a loved one's care fees fully funded can be a struggle, and many families feel their cases are wrongly rejected. James James Urquhart-Burton, head of continuing healthcare claims at Winston Solicitors, lays out the potential grounds for objecting to an NHS refusal and how to appeal.

Will you inherit any state pension from your husband or wife?

PIP is tax free and is not affected by your income or savings, or most other benefits. We explain the rules, how to apply, and where you can turn for help below.

Pension credit boosts your weekly income and opens the door to a lot of additional help with housing costs, heating, council tax, TV licences and other bills.

Ten ways to avoid inheritance tax legally

The 40% inheritance tax rate is drastically high - but only applies if you have amassed enough assets for your loved ones to become liable on some chunk of them.

Appointing someone you trust, usually a family member or friend, as attorney to take over your affairs if you fall ill is a relatively straightforward business. Here's how it works.

How to turn your pension into retirement income: A five-step guide to sorting it out

Everyone is allowed to save for retirement out of untaxed income up to a pretty generous level every year, including the highest earners. So how does it work?

Savers collect a string of pension pots during their working lives but many never bother merging any of them. It is not always advisable because you can lose valuable benefits - here's what to weigh up.

State pension age: What is the retirement age in the UK?

There are many tax traps for the unwary when it comes to pensions. It's especially important to find out about them if you don't get financial advice when you access your fund.

It will be little consolation for the loss of your health, but there are ways to use your pension pot to relieve money troubles should you find yourself in this sad situation.

How do I find a good accountant? Five top tips from a tax expert

Do you ever receive your tax code in the post, look at it and not really understand what it means? Tax expert Heather Rogers explains how to check it is correct, so you don't overpay tax.

Have you received a tax code for 2022/23 that is incorrect? Tax expert Heather Rogers explains the most common errors that crop up, and how to get HMRC to put them right.

How do I find a pension I had with an old employer?

We decode some of the jargon, from the more commonplace to the exotic, that you might come across when exploring your pension options.

When someone dies it is essential to deal with their estate, which is made up of their home, savings and investments and belongings. We explain probate.
ASK A PENSIONS EXPERT
 

An uncle is leaving 70% of his £500k estate to charity - so who pays the inheritance tax

Could we give the pension withdrawals to our daughters as gifts from excess income and keep them outside inheritance tax? William Stevens of Killik & Co replies.

Will the money invested in our rental property have to be handed back to pay for any ongoing care for my mother? Lawyer Ben Tyer, pictured, replies.

Our daughter won't be able to afford to live in our house after we die - what can we do?

My husband died before the age of 75 and I inherited his Sipp. Will I still be allowed to draw on it tax free from April 2027?Financial planner Michelle Holgate replies.

Since as of April 2027 my pension will be in my estate for inheritance tax, is there any advantage for keeping money there? Ray Black of Money Minder replies,
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