Changes to pension rules that came into play in April 2015 mean that there is now more flexibility with pensions than ever before. If you have a private pension fund and youÕre over the age of 55, you can now get access to as much of your pension pot as you like, when you like.
There are a number of different options available to people looking to do this. With help from a financial adviser, you can simply close your pension scheme altogether and withdraw all of the cash as a lump sum, although you should be mindful that this would leave you without a regular source of income for your retirement.
Alternatively, you can take smaller deposits from your pension pot to help subsidise some of those larger purchases like paying off a mortgage, or buying a car. This can be much more tax efficient than simply withdrawing your pension in one lump sum as the first 25% of any funds you withdraw from your pension pot will be tax-free, however, the remaining 75% will be subject to income tax at your highest marginal rate.
Before you decide to dip into your pension pot, there are lots of important factors to consider. The most commonly asked questions we hear from clients are: where should I invest my pension fund so it is in line with my views on risk? What happens to my pension fund when I die? Can I afford to live the kind of retirement I want to?
This is where we come in to offer guidance and advice. With almost 40 yearsÕ experience in the financial services industry, Explore Wealth Management can help you to tax-effectively manage your pension and plan ahead for the future.
Experts in cash flow forecasting and retirement planning, Explore Wealth Management has been voted one of the Top 250 independent financial advisers in the UK in a survey conducted by VouchedFor.