The pension freedoms have given retirees a whole host of new options. There is no longer a compulsory requirement to purchase an annuity (a guaranteed income for life) when you retire. The introduction of pension freedoms brought about fundamental changes to the way we can access our pension savings.
Options to improve your financial wellbeing in later life.
Half of Britons aged 55 and over (51%) admit they know little about the pension freedom rules introduced in April 2015, according to research. A further one in ten (10%) over-55s say they know nothing at all about the changes, which represented a complete shake-up of the UK’s pensions system five years ago.
Navigating complex decisions to shape your retirement finances
Pension freedoms have put a greater onus on people to keep themselves informed of their options when it comes to accessing their pension money. However, little knowledge and understanding of the rules could mean some people risk making decisions that are not best for them.
One of the most important decisions you will make for your future
Under the pension freedoms rules introduced in April 2015, once you reach the age of 55, you can now take your entire pension pot as cash in one go if you wish. However, if you do this, you could end up with a large Income Tax bill and run out of money in retirement. It’s essential to obtain professional advice before you make any major decisions about how to access your pension pot.