9/23/2023 0 Comments Martin lewis pension drawdown![]() Also accessing it early can reduce your ability to make future contributions. Keeping it in your pension (hopefully) enables it to grow. If you are in your 50s or early 60s you may well be working towards retirement – in which case focus on putting yourself in the best possible position to have enough income when you do retire. Should I take my pot out as soon as I can?Īs a rule, no. ![]() Beware people offering to do it for you early. Nor, in the main, does it apply to ‘final salary’ pensions (where what you’re paid is a proportion of your final salary).Ĭan anyone take cash out of their pension? They only apply to private pensions where you and/or your employer saved up a pot of cash for retirement. You don’t need to pay tax on the first 25% - the rest is taxed in the same way as a salary.ĭo the changes apply to all types of pension? Now you can take the whole amount as a lump sum. Before the changes you could take a quarter of those savings as a tax-free lump sum but you’d have to buy an annuity with the rest. What does "pension freedom” actually mean?īasically it’s all about how you use your pension savings. ![]() This content is largely taken from Martin Lewis’ 5 minute briefing on pension freedom ( which we thought was so perfectly put that we should share it with gransnetters). The radical new changes to private pensions have just come into force and while, according to the political spin, they offer “freedom and choice in pensions”, they can also be hugely confusing if you’re not sure exactly what they mean and how you can benefit from them. Money Saving Expert Martin Lewis says “D on’t rush into anything, take your time as this is an important decision that could impact you for 30 years”.
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