Pension Freedom Explained

In the Budget 2014, the government transformed the way individuals could save into pension products and then access their funds at age 55. Until then, most pension rules had been geared to protecting the funds and preventing them from being fully withdrawn by the use of penal taxation]. From April 2015 that has all changed and you now have what has become known as 'Pension Freedom' - and there is a new recognition that these funds are 'your' hard earned savings and you have the right to do what you want with them.

You are likely to live for many years after the age of 55 and these funds have to look after you and give you an income- with better health treatments that could even mean for another 55 years.

The new State Pension will provide a basic income once you reach your designated state retirement age but that isn't until you are between 65-70, depending on your age now, and who knows about the future! Are you confident you know enough about investing money for income and growth to ensure you can maintain the standard of living you want for the rest of your life? If you get it wrong can you live on the new State Pension (likely to be £148.40 per week flat rate 2016/17).

If you would like to find out more visit our resource centre packed full of informative and relative financial news or alternatively call 01772 860760.