In April 2015 new legislation came in to force which had a major implications for anyone with a pension scheme.

What are the new freedoms?

These new freedoms mean you can take your pension pot as a lump sum or as an income in the way you want to subject to your higher margin of income tax. You will no longer be forced to purchase an annuity (a guaranteed income for life)

You will also be able to pass your pension wealth on to your loved ones and in many cases this can be done in a tax efficient manner due to the new changes in legislation.

While not all of the freedoms will be appropriate for all people, it will be important to understand what options you have and whether your current pension allows you to take the options that are right for you.

 

What does this mean to you?

There is no obligation on all pension providers or pension schemes to offers the full range of new options, which means that if you took your plan out before April 2015 your current plan may not offer all the new freedoms.

If you pension does not allow you to flexibly take income and or capital on retirement, in some circumstances you may end up paying more tax than is necessary, or in some cases more then you need to.

If your pension does not allow you to pass your pension wealth on to loved ones in a flexible manner, in some circumstances they may end up paying more tax than is necessary, or in some cases more than they need to.

If you took your pension out prior to the new freedoms being introduced in April 2015, and are thinking of taking benefits from your plan, please contact One Stop Finance Team. We will review your pensions with you to ensure you understand the options, allowing you and your family benefit from all your hard earned pension wealth.

Tax treatment varies according to individual circumstances and is subject to change.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

For more information please contact one of our One Stop Finance Team Below

 

 

London Office

Elwood House, 42 Lytton Road,
New Barnet, EN5 5BY
Tel: + 44 (0) 20 8441 2605
Fax: + 44 (0) 20 8441 8607
Email: infolondon@osfg.co.uk

Hemel Hempstead Office

Charleston House, 13 High Street,
Hemel Hempstead
Hertfordshire, HP1 3AA
Tel: +44 (0) 1442 23 22 72
Fax: +44 (0) 1442 23 22 75
Email: infohemel@osfg.co.uk