How have the budget changes affected your pension?
In one of the biggest changes to pensions in nearly 100 years, the chancellor, George Osborne, has announced that everyone with a personal pension will have the opportunity to release up to 100% of their pension fund as a cash lump sum when they hit 55 after April 2015.
The first 25% of any cash lump sum you release is still tax free but anything over this amount will be taxed. This is great news for people who want to take more control of their income in retirement but could push them into the higher tax bracket if they release too much of their pension too quickly. We can help you minimise the tax you pay and maximise the money you receive.
Why is my pension company not allowing me pension freedom?
Although the budget changes were meant to offer everyone pension freedom, not all of the pension companies are playing ball. Many people are finding that the freedom they were promised isn’t as easy as they though it would be. If you are having trouble getting the freedom you want contact us today and we will help you and guide you to get the most out of your pension.
Take control of your pension.
Before 2006 it was compulsory to purchase an annuity, at some point, from your pension fund providing you with an income for life in retirement. Although there have been other options available to let you control the level of income you take, these have not always been available to people with smaller pension funds. Now however, everyone can take more control and can decide how and when they receive their pension income.
Receiving an income through an annuity is still an option and, for some people, will still be the best and most suitable option.
Draw the income when you need it.
Just because you can doesn’t mean you should automatically take your whole pension fund now and buy that Lamborghini you have been dreaming about! You should be considering your income needs for the future and taking your money as and when you need it. If you need to clear some debts now then taking a lump sum could help, but if you don’t need the money you can leave it in your pension until you do.