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Autumn statement should be signal to save now – Old Mutual Wealth

18/11/2015

Pension savers should be looking to put as much as they can into their funds ahead of the Chancellor’s Spending Review and Autumn Statement announcement due to be delivered on Wednesday, November 25, according to leading wealth manager, Old Mutual Wealth.

So regular are the announcements of significant change to pensions rules that despite recent statements that details of the Government’s plans following the Pension Tax Relief green paper would not emerge until Budget 2016, consumers should still look to make the most of the current system as soon as possible.

Old Mutual Wealth pensions technical expert, Jon Greer, comments:

“The way I see it, the spending review and Autumn statement is an opportunity for the Chancellor to set the scene on a few rolling items ahead of the budget in March 2016. Consumers should also see it as a signal to undertake a review of their finances, both ahead of the statement itself and ahead of the budget and tax year end in April 2016. We do not expect to see any significant announcements this time but then nobody was expecting that in March 2014 either.

Use it or lose it

“In the first instance, if you are a higher rate taxpayer and have the ability to, and are thinking of, funding extra amounts into your pension, I would do so as soon as possible. This is because even though the chancellor has indicated that the government’s future plans on Pension Tax Relief will not be detailed until budget 2016 - with the likelihood that higher rate taxpayers will see a reduction in the relief available on their pension contributions - recent experience suggests we should expect the unexpected. My message to them would be to act now.

“As well as funding ahead of the Autumn statement, consumers should also be looking at the previous years’ annual allowances that may have gone unused. Few people are aware that you can use up to three years of unused allowances to fund into a pension, up to the value of your annual salary. This is particularly important as the annual allowance is expected by many to be cut from £40,000 as part of the government’s consultation on Pension Tax Relief. Post-April it will already be subject to a taper from £40,000 to £10,000 for those people who earn more than £150,000.”

Ends

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

Quilter is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

  • Intrinsic to Quilter Financial Planning
  • Private Client Advisers to Quilter Private Client Advisers
  • The Multi-Asset business to Quilter Investors
  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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