As people move into their mid fifties the pensions landscape changes significantly.

At that point you can release 25% of the pension pot as pension commencement lump sum ( PCLS) free of income tax. You can take this 25% out and leave the remainder to accumulate.

The most common usage of this is to (1) pay down debt (2) move it into tax shelters, like ISA’s, that can be used later to provide tax free income (3)

As you approach retirement most people are managing reducing earned income and becoming reliant on alternative sources of income. These are most often pension – state and private pension - rental income, investment income.

The areas we advise on mostly are income tax, lifetime allowance tax,  Inheritance tax, Capital gains tax

Allowances and reliefs also play a part – income tax, pension Lifetime allowance and reliefs, money purchase annual allowance, maximum pension annual allowance for high earners, capital gains tax mitigation on invetsments, Pensions and inheritance tax relief , who inherits your pension fund and succession rules.

Most recent Govt surveys tell us what we allready know – wealth in the UK is concentrated in house prices and pensions, and that people over 60 are doing rather well, and people under 30 are struggling.

It’s not surprising therefore to expect more taxation in these areas – that's just a responsible goverment approach.

So it’s important to point out that all these allowances are liable to change at all times - having an adviser for your pensions, enables you to keep on top of a changing environment

If you would like to discuss your current financial arrangements and plan for the future please CLICK HERE or call us on 01252 845900. An initial appointment is entirely without obligation and there is no charge.