It is a little known fact that the North Magnetic Pole is moving. Scientists have calculated it is now moving at the alarming rate of 50 kilometres a year, and is currently heading towards Siberia. By 2019 it is expected it will be located in Russia.

What would happen if our compasses pointed South one day? It sounds far-fetched but that is exactly what happened around 780,000 years ago according to scientific analysis.
These are fairly monumental facts and served to remind me that nothing is given and that change is inevitable, even when we are not fully aware of it. On the other hand, knowledge can empower us and enable us to predict the impact of change and help deal with it. Scientists are now investigating the possible effect of the Magnetic Pole shifting on the Earth’s magnetic field through the European Space Agency’s Swarm mission and their views, based on analysis of the data, will be crucial to knowing just how this may affect the planet in the future.

The most significant change in the personal finance space in our lifetimes is the recent overhaul of the pension rules. George Osborne’s announcement in his 2014 Budget speech pretty much turned the pensions compass on its head. It’s having a full understanding of those changes that will determine whether people make right or wrong decisions. But how many people really understand the ins and outs of the new rules? A recent survey by YouGov of 1,500 people aged between 54 to 65 found that almost one in 10 think all pension withdrawals are tax-free, while 16 per cent believe only 25 per cent is taxable.

Unsurprisingly, when they found out the consequences of fully withdrawing their cash it influenced their decisions. While initially 17 per cent said they would take their whole pension in one go, on being informed that, in fact, 75 per cent of the pension pot is taxable at the holder’s marginal rate of income tax, and that those paying the ordinary rate of tax who took the pot all in one go could fall into the higher rate tax bracket and see 40 per cent of their pension cash go to the tax man – this figure dropped to 11 per cent.

A full understanding of the pension rules that have come into effect this April is crucial before any action is taken. Those looking to retire will be pushed and pulled from different directions and it is important that your retirement plan is undertaken with the proper analysis so that it is appropriate for your needs.

At Lowes, we’ve been analysing pension rules and working with people on their retirement plans for over 40 years. It gives us the knowledge and the experience to help you through this latest round of change and to keep your finances pointing in the right direction.