Category: Uncategorised

Restrictions or charges for changing your retirement date You might be able to delay taking your pension until a later date if your scheme or provider permits this. If you want your pension pot to remain invested after the age of 75, you’ll need to check with your pension scheme or provider that they will… Continue reading Delaying taking your pension

One of the most important decisions you will make for your future Under the pension freedoms rules introduced in April 2015, once you reach the age of 55, you can now take your entire pension pot as cash in one go if you wish. However, if you do this, you could end up with a… Continue reading Turning pensions into money you can use

Tax relief and pensions Annual and lifetime limits Tax relief means some of your money that would have gone to the Government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions.… Continue reading Tax relief and pensions

Blending your retirement options IF YOU ARE LOOKING FOR A BALANCE OF FLEXIBILITY AND SECURITY TO SUIT YOUR CIRCUMSTANCES, YOU COULD CONSIDER BLENDING YOUR RETIREMENT OPTIONS. YOU DON’T HAVE TO CHOOSE ONE OPTION WHEN DECIDING HOW TO ACCESS YOUR PENSION POT – YOU COULD SET UP A COMBINATION OF OPTIONS TO SUIT YOU. You can… Continue reading Blending your retirement options

Cashing in your entire pension pot YOU COULD CLOSE YOUR PENSION POT AND TAKE THE ENTIRE AMOUNT AS CASH IN ONE GO IF YOU WISH. NORMALLY, THE FIRST 25% (QUARTER) WILL BE TAX-FREE, AND THE REST WILL BE TAXED AT YOUR HIGHEST TAX RATE BY ADDING IT TO THE REST OF YOUR INCOME. ONCE YOU’VE… Continue reading Cashing in your entire pension pot

Small cash sums from your pot Taking money from your pension as and when you need it YOU CAN USE YOUR EXISTING PENSION POT TO TAKE CASH AS AND WHEN YOU NEED IT AND LEAVE THE REST UNTOUCHED WHERE IT CAN CONTINUE TO GROW TAX-FREE. FOR EACH CASH WITHDRAWAL, NORMALLY THE FIRST 25% (QUARTER) IS… Continue reading Small cash sums from your pot

Flexible retirement income Re-investing funds designed to provide you with a regular taxable income WITH THIS FLEXIBLE RETIREMENT INCOME OPTION KNOWN AS ‘FLEXI-ACCESS DRAWDOWN’, YOU CAN NORMALLY TAKE UP TO 25% (A QUARTER) OF YOUR PENSION POT OR OF THE AMOUNT YOU ALLOCATE FOR DRAWDOWN AS A TAX-FREE LUMP SUM, THEN RE-INVEST THE REST INTO… Continue reading Flexible retirement income

Purchase an annuity Choosing a taxable income for the rest of your life YOU CAN NORMALLY WITHDRAW UP TO A QUARTER (25%) OF YOUR POT AS A ONE-OFF TAX-FREE LUMP SUM, THEN CONVERT THE REST INTO A TAXABLE INCOME FOR LIFE CALLED AN ‘ANNUITY’. THERE ARE DIFFERENT LIFETIME ANNUITY OPTIONS AND FEATURES TO CHOOSE FROM… Continue reading Purchase an annuity

How to fund a fulfilling life beyond our working years Healthier lifestyles and medical advances mean that many of us can expect to enjoy longer lifespans than previous generations. However, this creates a significant challenge both for society as a whole and for us all as individuals – how to fund a fulfilling life beyond… Continue reading Long term investing

Understanding the bottom line Retired households handed over an average of £7,400 each in tax last year – the equivalent of nearly 30% of their annual income, according to analysis of newly released data[1] by Prudential. The total annual tax bill for the UK’s 7.1 million retired households was £52.7 billion from direct and indirect… Continue reading Retirement taxation