It’s Pension Freedom Day! Here are 5 tips that we hope will help you make good decisions with your pension pot in light of the new freedom and choices.
If you have a pension pot that needs to last you all your life and you don’t know how long that is going to be;
1 – seriously consider buying an annuity (a very effective insurance against longevity);
If you have some debt to pay off, maybe credit cards;
2 – take your tax free cash from the pension pot without taking any taxable benefits;
If you seriously want to access the whole of your pension pot;
3 – take the tax free cash and enough of the balance of your pension pot with the least tax take possible. Maybe take your pension pot in stages over a number of income tax years;
If you want to give your pension pot away to children or grandchildren;;
4 – question whether you can make that gift from other assets because your pension pot is highly inheritance tax efficient;
If you want to “blow” your pension pot;
5 – do it with purpose – don’t fritter it away on stuff that you will have forgotten about in three years time.
And a final bonus tip;
6 – please don’t get scammed!! If an investment sounds too good to be true it’s because it is, too good to be true!!
Do get in touch if you have any questions about pension freedom.
