Pension Notes

There were fewer changes to do with pensions this year in the Budget, but it is worth reviewing the key facts regarding pensions:

1. The usual minimum age to take pension benefits is 55 – male or female

2. Normally you can take up to 25% of your pension fund as Tax Free Cash.

3. You do not have to retire to take your pension benefits.

4. If the total of your pension funds is less than £18,000, from age 60 you can take it all as cash (25% Tax Free) and the balance taxed as earned income.

5. If you have a couple of very small pots (less than £2000 in each pot), from age 60 you can take these all as cash (25% Tax Free and the rest taxed as income).

6. You have various options when you take your pension benefits including:

a) an enhanced annuity (higher income) if you have serious medical issues;
b) taking just your Tax Free Cash and leaving the balance invested until later and with the option of taking an income from your pension fund annually;
c) taking an annuity which guarantees an income for as long as you live – level or increasing payments.

We can help advise on all of your choices so as to help customise your pension benefits to meet your needs. Give us a ring on 01342 313302.