On the 6th April 2015, new pension rules took effect in the United Kingdom, designed to offer retirees more freedom to manage their money. If you’re approaching retirement age, it’s important to understand how these pension rule changes will affect your income.
What the Pension Rule Changes Mean For You
The pension rule changes are largely targeted at those with Defined Contribution (DC) schemes, and allow those over 55 to take money from their pension pot freely, subject to tax. They also make it easier for you to pass a pension on to your dependants.
Instead of purchasing an annuity, many retirees will find income drawdown provides a more flexible option; a combination of the two is also possible. However, under the new pension rules some retirees may also be at risk of running out of money if they do not receive appropriate advice before making a decision, as the options are more varied now.
The Government’s Pension Wise service offers guidance on the options available, but will not recommend specific products. Instead, it is advisable to seek independent financial advice to ensure that you make the right decisions for your future financial security.
Contact Burton & Fisher for Advice on the New Pension Rules
The decision on what to do with your pension is an important one, and it’s not to be taken lightly. It’s vital that you understand all the available options, and how they will affect your retirement income, before you commit to a course of action.
If you want to know exactly how the new pension rules affect you, one of our expert financial advisors can talk you through your personal circumstances and offer advice tailored to your circumstances. For more information, or to book an appointment, contact us today on 01524 416872.