Planning for your Retirement has arguably been given the biggest boost since the introduction of the State Pension in 1909. From 6th April 2015 the relaxation in the rules concerning the taking of pension benefits and pension death benefits mean that pensions, so often seen as not worth having, should be viewed in a new light.
There will always be annuity type products available for those that need them, but the ability to take your whole pension fund in cash, with 75% taxed at your marginal rate of tax, has provided everyone with that extra choice and flexibility. Rather than take all of it, take some of the fund to suit your circumstancesHaving started to take benefits on death before 75, to be able to pass the pension fund Inheritance Tax free to your children as a pension fund, means that you are looking after the next generation tax free. Even after age 75 funds can be passed on with tax paid at the beneficiaries’ marginal rate
Combining the new features with the Government’s willingness to encourage private provision with contributory employer pensions for all by 2017 and continued provision of tax relief on contributions paid and you have a concoction that means it has never been a better time to plan your retirement