From April 2015, you’ll have more flexibility than ever…
April 2015 will see the biggest change to pension legislation that the UK has seen in over a century. The changes will allow much more choice and control over what you’re able to do with the nest egg that you have worked and saved so hard for when you come to retire.
From age 55, you’ll be able to:
- Take out up to 25% tax-free and then use some or all of your pension to buy an annuity (income for life)
- Take out up to 25% tax-free and then Drawdown any amount you like, over any period
- Take out one or a series of lump sums however you like, with 25% of each being tax-free.
Before you make any rash decisions and decide to blow it all on a Lamborghini, make sure you take advice, as you could end up with a larger tax bill than you expected.
We’re able to help you understand what effect the increase in pension flexibility may have on your personal situation, putting you in a better position to make the most of your pension overall.
It's a good time to review your financial plans...
These changes make it a good time to review your financial plans for the coming tax year and beyond and get the answers to those ever important questions such as:
- Am I invested in the most efficient mix of products and at the right sort of level to achieve my financial goals in the run up to retirement?
- Will I be able to retire when I want?
- How much do I need to afford the lifestyle I desire in retirement?
If you would like to speak to a financial planner about your pension/retirement, give us a call today.