Huge numbers risking a double tax hit on their pension

By FMB on 

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Data from the Financial Conduct Authority* shows that the number of pension pots accessed for the first time in 2020/21 totalled 596,080; the number fully withdrawn totalled 341,404. Only 33% of consumers taking money from their pension for the first time took regulated advice. People cashing in pension pots without taking advice could be putting themselves at risk of paying more tax, and those cashing in pots in one go could pay up to 45% Income Tax on part of their withdrawal, while also losing Inheritance Tax protection.

If you are considering taking money out of your pension, we would always encourage you to seek professional advice before doing so to ensure that it's the most suitable and tax-efficient option for you.

* Link Group, 2022, 4FCA, Dec 2021

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

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