Under new Pension reforms you are now able to drawdown up to 25% of your Private Pension Tax Free providing you are over 55 years of age.
As of April 2015 Private Pensions holders over the age of 55 will be allowed to access their whole pension pot. The first 25% of your pension savings can be withdrawn as a tax-free lump sum, which may be ideal for those who have a mortgage or debt which they wish to clear. The balance can also be withdrawn too, however, this would of reduce your retirement income later in life and be subject to tax.
If you choose a Lump Sum or Income Draw-down product you are also able to pass down your remaining pension pot to future generations on the event of your death.
Understanding the choices will help you make the right choices for you and your family. We’ve highlighted a few of the areas you should consider, but should you wish further advice on withdrawing a lump sum out of your pension call Scottish Pensions on 0141 465 1909 for a free consultation with an Independent Financial Adviser.
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