You may have heard that the rules surrounding how you take your pension benefits are changing. These new rules will apply from April 2015.
Essentially, you will have additional options for withdrawing your pension fund. You will still be able to take 25% of your fund as tax free cash, but in addition you will be able to withdraw unlimited additional amounts. These additional amounts will be subject to income tax.
So, rather than choosing between the different types of annuity & drawdown contracts, you will be able to withdraw your funds with complete flexibility. This makes pensions a much more attractive place to accumulate capital than ever before, now the constraints have been lifted. This will also be a great opportunity for tax planning when you decide to withdraw funds.
We fully expect our clients to make good use of the opportunities this new legislation presents.