Pension savers will be able to withdraw up to £1500 tax-free from their pension fund to pay for independent financial advice. The government made this announcement today. (3rd February2017)
The scheme will allow pension savers to withdraw up to £500 from their pension three times in their life time.
Simon Kirby the Economic Secretary to the Treasury, said. Savers would only be able to make one withdrawal, of up to £500, in any given tax year. He added that it would be available at any age and could be used to pay for robo-advice as well as traditional face to face advice.
Is this for all pension?
It should be noted however, that the pension fund withdrawals will only be available for defined contribution pensions, not defined benefits pensions.
Research quoted by the government found that only 22 per cent of pre-retirees knew the value of their pension pot. Only 14 per cent of people were confident planning their retirement without financial advice.
Economic Secretary to the Treasury, Simon Kirby, said-
“Pensions and savings decisions are some of the most important a person will make during their lifetime. This allowance will help people get the vital financial help they need to plan for their retirement.”
The government will release more information shorty.
Peter Anstee from Anstee and Co said-
“I can see this being a step in the right direction for helping people with smaller pension pots who need independent financial advice I await more details in due course.”
Whether you’re thinking about saving into a pension for the first time or making decisions for your retirement, it’s important that you make the most of your money
There are many factors to consider when looking at a pension and the process may seem complex and time-consuming. Anstee & Co expert pension advisers will support you at every step. Simply contact us and we can guide you through the process from start to finish.
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