‘There has never been a better time to be thinking about your pension’, so say Prest Financial Planning as the freedoms that came into force on 6th April 2015 will afford savers more flexibility than ever, so it’s important to understand the options available to you to ensure your savings work as hard for you as you have for them.
What you do with your pension pot is up to you but the significance of your decisions should not be underestimated. That’s why Prest are suggesting you seek advice to make sure you are making full use of the options and using them to your advantage.
Your options
Once you reach the minimum pension age, currently 55, you will be able to
- leave your pension fund invested;
- enter drawdown, thereby taking some of your money whilst leaving the rest where it is;
- withdraw cash in one or a number of lump sums;
- purchase an annuity;
- go with a combination of all of the above;
- or take your entire pension pot in one go.
Graham Prest, Managing Director, comments:
“When taking an income from your pension in any way, the first 25% will normally be tax free with the remainder being taxed as income. Pension taxation can be complicated, so it is very important that you seek professional advice for clarification of how it affects you and your particular set of circumstances.
“The new death benefit rules have also transformed Pensions into Inheritance Tax Planning Friendly assets. They are therefore becoming vitally important ‘Family Wealth’ transfer vehicles and we hope people will be encouraged to seek advice before doing something they may later regret.”
Prest are Chartered Financial Planners who understand just how important decisions and life events like retirement and long-term investments are.
Prest Financial Planning – 0161 4567890 or email info@prestfinancial.co.uk
Azets welcomes debt advisory specialist to North West 
HMRC warns of Self Assessment scams 
Inflation rose to 3.8% in July