There are many new changes afoot in 2015 with regards to pensions, so whether you are saving for old age, about to retire or even have already retired there are a few things you need to know about.
Pension freedom – will give everyone more power over how they spend, save or invest their retirement pots from April 2015, by giving people over 55 years old access to their entire pension pot, and removing the requirement of buying an annuity that would have traditionally given an income until they die.
The new reform gives access to invest-and-drawdown schemes which were previously restricted to wealthier savers, and the axing of a 55% death tax on pots left invested.
Plus all savers arent limited to just one tax-free lump sum worth just 25% of their pension pot. Everyone is able to access their pension and withdraw as much as they want and as many times as they want getting 25% tax-free and the rest taxed like income.
Although this sounds great you need to know about how this could affect your personal tax and the best ways in which you are able to make the most of your pension pot fund without the tax man taking too much – download our free guide today.
Other changes include the announcement of husbands and wifes whose partners die before reaching 75 will get annuity income from their spouses pension tax-free.
Also beneficiaries of joint life annuities or other types that come with death benefits currently pay income tax on what they receive.
If you would like to know more download our free guide on Pension freedom 2015.
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