Following the changes to pension rules collectively known as "Pension Simplification", all registered pensions in the UK may provide up to 25% of their value as a tax-free lump sum when retirement benefits are drawn.
Most individuals choose to opt for the maximum 25% tax-free cash because the alternative of drawing an income seems less attractive. Pension income is determined by annuity rates, which most people feel are low and pension income is taxable. Also many individuals simply wish to get their hands on their money, which has often been locked away for many years in the pension scheme.
If you wish to draw your tax-free cash, Contact Us or use the Enquiry Form.
Tax free cash may be used for any purpose and is available from age 55.
You do not necessarily need to draw your pension at the same time as your draw your tax-free cash.
Ideally, we would recommend that tax-free cash from a pension be used to provide additional long term income and we have many options available to suit all requirements.