BUDGET BRINGS NEED FOR LATE-LIFE PLANNING INTO FOCUS

The budget’s hammer blow to private sector pensions is a wake-up call for Brits considering late-life planning, according to a leading cremation provider in the UK.
Chancellor of the Exchequer Rachel Reeves’ announced that the amount of contributions made via salary sacrifice that is exempt from national insurance contributions (NIC) will be capped at £2,000 a year from April 6, 2029.
Salary sacrifice allows employers to agree to reduce an employee’s salary in return for a benefit, which can include the employer making contributions to a pension scheme on the employee’s behalf. Currently, no employment income tax or NICs are paid on those contributions.
Peter Shuttleworth, General Manager at Celebration of Life, says the move will result in the reduced pensions savings for employees at a time when it is widely acknowledged that UK workers are ‘sleepwalking’ into retirement.
He said: “Restricting salary sacrifice is a significant change which should prompt people to take a good hard look at their long-term plans.
“The government claims it is trying to encourage and support post-retirement planning yet has imposed a tax penalty on people trying to do the right thing by saving efficiently for their retirement. Now, more than ever, families and couples should take an in-depth look at all elements of their post-retirement planning, from pensions to tax to funeral arrangements.”
Celebration of Life is a trailblazer in the growing sector of direct cremation – where the deceased is collected, cared for, and then cremated without a service or mourners present, allowing for a personalised farewell event that is more tailored to the departed’s life and beliefs than a traditional funeral.
Mr Shuttleworth added: “Direct cremation offers the comfort of knowing your family and friends will not have the financial and emotional burden of paying for your funeral while ensuring your specific final wishes are being observed.”
Founded in 2019, Celebration of Life a dedicated of direct cremation both as a prepaid plan or at the time of need.

Editor's Note:
Photograph available on request.
For further information contact Celeste Clarke at Century PR on 07799064066 or email celeste@centurypr.co.uk.