New Pension Freedom - overview

 

Overview

The following only applies to Defined Contribution pension plans and NOT Occupational or Final Salary pensions which are calculated based on your years of employment and leaving salary.

If you are over age 55 you can now access some or all of your pension, to use as you wish.

You can do this if you are working or not. Other than the normal 25% of the fund value being available Tax Free any additional monies you take, however you take them, are liable to income tax deduction at your highest rate of tax.

View our 52-second video about Pension Freedom

Your options are:-

  • Take out the whole of your fund and pay the tax (not a good idea).
  • Take out just your tax free cash, or some of it (if you have not already done so), and delay taking income or more cash, which would be liable to income tax, to a later date.
  • Take out your tax free cash, (if you have not already done so), and take your income as regular or ad hoc payments or a mix of both, when you want and how you want, in line with your tax liability in the year you withdraw funds.
  • Take regular and or ad hoc payments from your plan BUT, if you have not already taken your tax free cash, you can receive any payments as part tax free cash and part taxed income. This leaves you more tax free cash for a later date and helps you manage your tax liability.
  • Use some or all of your pension to purchase an annuity for life or on a short term basis.

Confidential Advice from PensionLite

As specialists in pension we are very aware that confidentiality is vital when it comes to matters such as these, and we can assure you that your enquiry is dealt with confidentially by our highly trained and qualified team. We can tell you whether you are eligible for pension release and advise you on how it could affect your circumstances, now and in the future.

For more information on our excellent services and to find out more about pension release and whether it could be the right choice for you, contact us on 01952 279 379 today. Alternatively you can book a consultation call online.

Want to get in touch?

01952 279 379

support@pensionlite.co.uk

Our Financial Conduct Authority authorisation number is 464011.

The options listed here are for information purposes only and should not be viewed as financial advice. You should always ensure you seek financial advice relevant to your specific needs and circumstances before making any financial decisions.