Flexible Drawdown | Final Salary Transfers | Pension Solutions - Call 020 33 55 4827 Now !!

Guranteed Minimum Pension

Best Pension Annuity is a trading style of Platinum Financial Consulting LTD    
Flexi Access Drawdown Home Get your Free Flexi-Access Drawdown Quote Final Salary Pension Transfer Get Tax Free Cash from your pension IFAs & Introducers
Your Pension Fund is a valuable asset that was intended to provide income in your retirement.  Please think carefully before making an irreversible decision
flexi access drawdown details

A European Court ruling from 1990 is suddenly raising questions about a key element of pension taxation.

On 17 May 1990, the European Court of Justice decided that gender equality should be applied to non-state pensions. The case, Barber v GRE, prompted a major overhaul in UK pension provisions. At the time most pension schemes had different pension ages for their male and female members, echoing the 65/60 differential that applied to state pensions.

The Court’s judgement presented a particular difficulty for schemes that contracted out of SERPS, the old state earnings-related pension scheme. To contract out, the private scheme had to offer at least a guaranteed minimum pension (GMP) that, more or less, equaled what SERPS would have provided. This posed a classic Catch-22: the GMPs were unequal because SERPS was based on state retirement ages, but Barber said pensions had to be equal.

A problematic arrangement

The fudged solution was to equalise total pension benefits. But this didn’t completely resolve the problem as pre- and post-retirement escalation rates were not the same for the GMP and non-GMP portions. As might be anticipated, the matter ended up in the courts and in 2018 – 28 years after the Barber decision – the UK High Court ruled that GMP benefits had to be equalised. Equalisation will mean that some people will see their pension benefits increased, although the amounts will generally be small.

Cue a new problem, which has just emerged: if you have fixed protection (2012, 2014 or 2016) for your lifetime allowance, any benefit increase outside the normal inflationary adjustments means that the protection is lost. In extremis, for somebody with fixed protection 2012, a small GMP equalisation adjustment could cut their lifetime allowance from £1.8m to £1.03m (£1.055m from 6 April 2019). The newly unprotected sum would then potentially be subject to a tax rate of up to 55%.

HMRC is aware of the problem but has not acted so far. The situation serves as a reminder that if you benefit from one or more of the various forms of pension protection, their loss can be highly expensive and that great care is needed with any pension changes, even involuntary ones... 

The value of tax reliefs depends on your individual circumstances.

Tax laws can change.

The Financial Conduct Authority does not regulate tax advice. 



Article writtten May 2020

Nothing in this article should be taken as personal advice and recommendation. UK tax rates and legislation are liable to change. Products, concepts, rates, legislation and rules referred to in the article above may not be current at the time you read the article.
Get your FREE Drawdown and Information Pack
Defined Benefit Pension Transfer Advice
By just answering a few simple questions we can provide you with a personalised Flexi-Access Drawdown quote and information pack
Total value of your pension funds :
Please enter to the nearest £ (pound)
Your Age :  
Pension Type :  
Please select most appropriate option
Your Email Address :
We will initially send all information and quotes
to your email account
You will be taken to a secure webpage
Google Chrome users may need to alter browser settings
Drawdown Quote Panel
Flexi-Access Drawdown Quote Footer
Tax Free Cash Testimonial
In the course of building up and running a business over 35 years, I have communicated with literally hundreds of organisations and people. I can say without doubt that Platinum Financial Consulting is the most dedicated and efficient service I have ever encountered.
Mr Todd
Score : 10 out of 10
10 out of 10 Pension Lump sum Service
Before you make any decision, it is imperative that you are fully aware of flexible drawdown pensions and the vaious ways it can be used. It is also impportant that you understand how your money is invested and any potential tax issues. At Best Pension Annuity, we have been assisting shoppers to make use of their pension funds in all manner of ways. We are exceptionally proud of the feedback our customers give us. If you have any question about flexible drawdown pensions or how we can help, please don’t hesitate to contact us. You can call us on 020 33 55 4827 Now !!
Get instant help from our friendly no-obligation UK Helpline
Platinum UK wide Pension Service
good old fashioned personal service via the Internet
Please Note : The new Pension Freedoms place a great deal of responsibility on the customer to make the right long term decision about their pension fund and how it is used. While Government Ministers say they "trust" people to make the right decisions, they will not have to deal with the financial consequences of a customer making the wrong decision. Your pension fund was intended to provide you with a long term income in retirement, if you take it all as one lump sum you may find yourself with little or no income during the later years of your life. This website does not give personal financial advice, you should think very carefully before making an irreversible decision. If you are in any doubt please request our independent financial advice service or speak to the Govenment's free guidance service Pension Wise.
above details about casing in your annuity
flexi access drawdown regulation
  This website is for information purposes only.
This website DOES NOT contain personal advice based on your circumstances.

Best Income Protection is a trading style of
Platinum Financial Consulting Ltd

Registered in England. Company Number : 5985049

Registered Office Address : The Old School House, East End Road
Bradwell-on-Sea, Essex, CM0 7PY



Telephone : 020 33 55 4827            Fax : 0871 277 1422            Email : info@platinumifa.co.uk


Copyright © 2015 & 2024 Platinum Financial Consulting

FCA Registration Number : 827772


Flexi-Access Drawdown | Final Salary Pension Transfers & Advice | Annuities | Pension Solutions

annity trading forum