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Pension Freedoms – Great but Be Careful !

You will probably be aware that Pension Freedoms were introduced in April 2015 to give investors greater freedom over how they access their retirement funds.

However, in some cases, the new legislation seems to have given investors the impression that they can just go ahead on their own and fully en-cash their plans without considering the tax consequences.

We would always advocate taking professional advice BEFORE doing anything with your pension funds especially as the tax implications can be onerous.

However one of the main questions that people ask about Pension Freedoms is …Can I cash in my entire pension in one go?

As a major part of the April 2015 pension rule changes, it became possible to take your entire pension fund in one go as cash for you to spend as you wish.

You can do this from the age of 55.

However, there are considerable tax implications to consider before going for this option.

To do this, you can close you pension pot and take your fund as cash. The first 25% will be tax-free and the rest will be taxed at your highest tax rate (by adding it to the rest of your income).

There may be charges for cashing in your whole fund, and not all pension schemes, particular workplace pensions, or providers will offer this option.

Similarly, some pension companies will require that you take financial advice before cashing in, which means you’ll need to pay the adviser a fee.

As always, the devil is in the detail, and Here’s a Great Article Which Provides More Info

So please CONTACT US HERE and we will introduce you to Mantle Financial Planning – a firm of Chartered Financial Planners with expertise in this area of  retirement planning.

Alternatively why not give us a call on 020 8686 7756