Lowes Magazine Issue 115

PENSIONS

More people able to access their pension NEARLY A MILLION PEOPLE IN THE UK WILL turn 55 this year, which is the age at which most people can legally access their personal pension. The increased flexibility offered by the Pensions

Our standard advice is to not touch your pension until retirement, possibly later, unless absolutely necessary. These are tax efficient wrappers that should be used for the purpose for which they are intended, i.e. accumulating assets to help provide retirement income. For anyone who must access their pension, it is important they do so knowing the implications. They need a clear perspective on what their options are, how long their money may last them in retirement, what they need to keep paying into a pension to achieve the retirement lifestyle they want and, importantly, how they access their pension in the most tax efficient way, so they don’t end up paying the taxman more than they need to.

Freedoms, introduced in March 2015, means there are now greater options to choose from depending on an individual’s personal circumstances, including the ability to continue working, work part-time and part access their pension, or retire and fully access their pension. Yet many people are not seeking financial advice but are making complex decisions on their own, often unaware of the potentially serious implications on their retirement wealth and tax situation. In addition, they are at increased risk of falling victim to scams.

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