Personal Pensions – Don’t miss the April 2010 deadline!

13th August 2009

Did you know the minimum age for drawing from your pension is changing?

You may have made plans to draw from your pension on turning 50 years old, however this plan will now need to be reviewed. From 6 April 2010, the minimum age for drawing from a private pension will rise from 50 to 55 years old, this means that you may only have 8 months in which to take advantage before the age changes.

We can help you make plans for your pension before the changes come into force if you reach 50 years old before next April 2010.

Tax-free Lump sum

An incentive to do this could be the tax-free lump sum that you are entitled to. The amount you are entitled to will depend on the schemes that you have. It is possible in certain circumstances to take your tax free cash but defer taking an income.

If considering this option however, remember you cannot then take the tax-free lump sum at a later date. There are some rules around this so please contact us for advice before you take any action.

Phasing in your pension

With a personal pension there is no need to retire when you decide to take the benefits. Some individuals decide to take their pension a bit at a time as they move from full time employment into retirement over a period of time. However depending on your age this may not be possible from 6 April 2010 unless you are aged 55 or over.

For individuals that had intended on phasing in their pension once they reached 50, or if you are between the age of 50 and 55 and are currently doing this - we would recommend you bring forward any withdrawals before the 6 April 2010, because once this date passes you will no longer be allowed to do this and will have to wait until you reach the age of 55 before picking up payments again.

We are experienced and knowledgeable Alternative Financial Advisors and are qualified to give advice on Personal Pensions, please contact us on 020 7324 6030 if you would like to learn more about this deadline or any other financial advice you are seeking.

Back