A number of changes are being made to Pension Tax rules to reflect the great flexibility individuals will have to access their pension savings from aged 55.
Amongst many technical changes, the new rules will permit over 55’s to take their pensions all in one go if they choose. There will be no compulsion whatsoever to buy an annuity - the insurance policy which converts your pension pot into a monthly income for life. You should also be able to use any retirement fund like a bank account with drawing payments as and when they wish, taking a 25% tax free lump sum as they go.
It will be fascinating to see what effect this release of pension funds has on the investment and housing markets in particular.
The preparation for withdrawing funds may take several months as each individual pension plan needs to be looked at very carefully to see which rules apply to it. If you have several plans then they will all need their own paperwork.
Clients should take this year of 2015 to assess what their pension needs are. You will need to think about a retirement plan and consider how may years your money might have to last, what kind of lifestyle you want and the annual income that you will need in order to fund that lifestyle.
If you have less than 5 years to go before retirement, getting your pensions and other savings in order should be your top priority.
Although Beviss and Beckingsale do not provide independent financial advice ourselves we can always refer you to an appropriate advisor to assist in the process.