These new rules are due to come into force from April 2015 and it will completely change our perceptions of how we look at pensions and planning for retirement. You will no longer have to buy an annuity with your pension pot and you will be able to extract cash from your pension in many ways.
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Options
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You can take 25% of your pension pot and leave the rest invested or take an income as and when you want it.
You may take all of the fund in one go if you wish, but you may not want to do this, as you might have to pay tax on 75% of the pension fund. However, it is your money, and as George Osborne said, you should be trusted to make your own decisions.
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A further legislative change means that you will be able to pass on your pension to your children or grandchildren.
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Will all pensions be affected ?
No. Not all types of pension schemes will be affected. Most changes will affect those individuals who have a private or personal pension, sometimes referred to as a defined contribution scheme.
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What about my Company Pension ?
Most Company Pensions will not be subject to the new rules and the only way to access flexible benefits will be to transfer to a defined contribution scheme. This should be done with care and we recommend that you should only consider this after taking advice from one of our Pension Specialists. They will explain the relevant options open to you.
For help or to find out how you will be affected please email us on help@pension-pot.com or call on 07505 494224
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Our view
At Pension Pot we feel strongly that most people will need specialist advice and you should not make such an important and potentially life changing decision, based on guidance only.
Although this Government has launched the “Pension Wise” initiative, set up to give people guidance on their pension options, we feel that this will not be adequate, as most people will need advice specific to their own circumstances.
At Pension Pot you will not only be able to receive guidance, but if required you will be able to speak to a specialist pensions adviser who is regulated by the Financial Conduct Authority. The Advisers are specialists in all areas of pensions advice and hold the appropriate qualifications. This means that you are protected by way of the Financial Ombudsman Service and the Financial Services Compensation Scheme.
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For help or further information please email us on help@pension-pot.com or call.
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