You may have heard about the new Pension Freedoms, but did you know that you can take up to 25% of your pension pot from age of 55 tax free?
There are many tax advantages available to pension savers, but one of the most headline grabbing is the ability to withdraw 25% of the whole fund, tax free.
Whether it is suitable to do so will depend on your individual circumstances, but for some people, it can form part of sensible financial planning, pay down debts, repay the mortgage, make home improvements or even enhance their lifestyle.
What’s on offer?
By taking advantage of the tax free cash rules, you have the freedom to do whatever you want with your money. Better still, it’s tax free, meaning whatever you withdraw is exactly what you’ll get.
Do I have to take my tax free cash?
No! Whilst you can in theory take tax free cash from your pension at age 55, many people choose not to draw on their pensions this early in life, and continue to save for later life, when their incomes may have reduced from retirement and other sources of income or capital have been depleted.
What’s best for you will depend on your individual circumstances.
What can Cambrian do for you?
We will advise you on whether early access to your pension lump sum is suitable for you, based on your financial situation, needs and goals.
We will take a holistic view of your retirement planning, taking into consideration your expected income and expenditure in retirement, how and when this is likely to change, and how early access to your pension fund will impact your retirement plans.
What requirements are there to withdraw early?
If you’re wanting to withdraw your 25% tax free allowance from your pension, you must be:
- 55+ years old
- Have a private pension scheme, not an annuity
Arrange a consultation meeting
Call us today 01244 539 595 for a free, no obligation consultation or email firstname.lastname@example.org.