Are pensions taxable?

According to The Compensation Experts, ‘are pensions taxable?’ was searched 5,760 times on Google between May 2020 and April this year.

Answer: ‘Your pension is treated as earned income and is subject to income tax. However, it is important to remember that you’re usually able to withdraw 25% of your pension pot as a tax-free lump sum as soon as you turn 55.’

 

Are pensions worth it?

This question was searched 3,840 times on Google, and The Compensation Experts said:

‘In short, yes. Paying into a workplace pension is a tax-efficient way of preparing your finances for retirement. Even better, your employer is obliged to top up your pension pot with a contribution of at least 3% of your salary each month.’

 

Can I inherit my husband’s state pension?

With 2,620 searches on Google, questions over whether consumers could inherit their husband’s pensions came in at number three.

Answer: ‘If your spouse dies, you will be eligible to inherit at least part of their pension plan. However, you must have been married before 6 April 2016, and your partner must have reached state pension age before 6 April 2016, or, would have reached state pension age by this date. If you remarry before you reach state pension age, you will not be eligible to inherit your partner’s pension.’

Pensions: can you cash them?

Fourth on the list with 2,040 yearly Google searches is cashing in pensions.

Answer: ‘You can cash in 25% of your entire pension savings once you reach the age of 55, as a tax-free lump sum. After this, you can continue to withdraw the remaining 75%, but you will have to pay the standard tax rates (as well as any withdrawal charges outlined by your pension provider).’

Are private pensions safe?
With 1,680 yearly Google searches between May 2020 and April this year, Answer: ‘All personal pension pots are protected by the Pension Protection Fund (PPF), which covers up to 100% of your payments should your employer goes bust.’

 

Pensions: where to start?

This search is seventh on the most Googled pensions questions between May and April. Answer: ‘Your employer will usually automatically enrol you into a scheme once you earn a salary of over £10,000. If you’re not automatically enrolled, it’s well worth having a chat with your company to put you on a plan.’

How pensions are divided in divorce?

Multiple lockdowns were a strain on everyone, but after 840 Searches on Google on who gets what after a divorce, Answer: ‘Firstly, you can make an informal spousal agreement to protect each of your pensions in the event of divorce.  Alternatively, there may be a split. This can either come in the form of a pension transfer, or one of you can offset the value against other assets you share. For instance, you may agree that one of you gets a greater share in the family home in exchange for the other keeping all of their pension.’