At Budget 2014 the government announced the most fundamental reform to the way people can access their pension in almost a century, by abolishing the effective requirement to buy an annuity, and announcing plans to give people much greater freedom over how they access their pension savings.
From April 2015, the tax rules were simplified to give people unrestricted access to their pensions. Drawdown of pension income will be taxed at marginal income tax rates rather than the previous rate of 55% for full withdrawals. The tax-free lump sum will continue to be available. All of the existing options, including buying an annuity, remain as options. However, those who do not want to purchase an annuity or withdraw their money in one go will be able to keep their pension invested in a drawdown product and access it over time.
Taking income from your pension can be complex. You need to consider the investment returns that you may be able to achieve and the level of income that you wish to take. If you are unsure about your options you should consult a suitably qualified independent financial adviser. Book your initial meeting with one of our advisers now, at no cost.
Your investments can go up as well as down. You may not get back the amount you invested.