Increased retirement age makes private pensions more important for farmers, says NFU Mutual

• Retirement age for men and women will rise to 66 by 2020
• Private pensions can still provide retirement income from 55
• Still time for people to grow retirement income before changes

Following yesterday’s spending review, insurance, pensions and investments specialist NFU Mutual is advising investors to make the most of their pension contributions, given the Chancellor’s decision to raise the State retirement age.

The State retirement age for men and women will be increased to 66 by 2020, four years earlier than expected, in order to save £5 billion a year. Commenting on the decision, Shelagh Hamer, pension expert at NFU Mutual, said:

“This rise in the State retirement age makes private pensions all the more important for people who want to enjoy a longer retirement. It’s never too early or too late to start investing in a private pension. And, with changes coming into effect from 2020, there’s still plenty of time to build a substantial pension pot.

“Anyone looking to scale back their work commitments before they receive their State pension can still start drawing a private pension from the age of 55. People with private pensions will still be able to access their State allowance once they reach State retirement age.”

Growing retirement savings with regular contributions is tax-efficient and many work schemes will also benefit from employer contributions. Investors looking for an independent forecast on what their current pension could pay out and how paying in more could benefit later should visit www.moneymadeclear.org.uk.

Farmers should make the most of their pension contribution this year says NFU Mutual

• Treasury announcement has mixed fortunes for pension savers
• Simplification of tax rules is welcome news for high-rate taxpayers

Following the announcement by HM Treasury to implement changes to restrict pension tax relief, Sean McCann, tax specialist at insurance, pensions and investment specialist NFU Mutual, explains why high earners should make the most of their pension contributions while they still can.

“It is vital that some high earners try to maximise this year’s tax-efficient pension contribution immediately. Someone with a yearly income between £50,000 and £130,000 should consider investing more of their savings and disposable income before the reduced annual allowance comes into force in April 2011.

“The Treasury have also simplified some of the rules and this is good news for people earning over £130,000 each year. Full tax relief will be available on the first £50,000 of contributions. Currently, tax relief is restricted for those with an income over £130,000.

“The decision to reduce the lifetime allowance from £1.8 million to £1.5 million from April 2012 is not great for pension savers, but we urge people, whatever their income, to take this opportunity to discuss their retirement planning with a financial adviser.”

NFU Mutual understands the pensions and investment needs of those who live and work in the countryside and is dedicated to helping its members make the most of their money.

With over 300 Agency offices throughout the UK, NFU Mutual members wanting to discuss their financial provisions can book an appointment with an NFU Mutual Financial Consultant. Members can even arrange a home visit to talk through their finances in the comfort of their own living room.

NFU Mutual Financial Consultants advise on NFU Mutual products and services and in special circumstances those of other providers. For more information on NFU Mutual’s pension products, members can visit their local branch, visit www.nfumutual.co.uk , or call 0800 622 323.