Greater Pension Freedoms, Mean Greater Pension Responsibility

July 15, 2016

Share this page

Pension Freedoms

New pensions freedoms have meant that when planning your retirement, you have more flexibility than ever about what to do with your savings. However, with greater freedom, comes greater responsibility. Research by the Open University has shown that 70% of UK consumers are unable to answer basic GCSE level questions regarding finance. This is why we have partnered with the Open University to form The Centre for the Public Understanding of Finance. As people navigate the new reforms, expert advice and support is needed now, more than ever.

What Does This Mean for Your Pension Pot?

The reforms have meant that you now have more options as to how to make the most of your pension pot. In almost every case, 25% of the sum taken out will be tax free. After hitting 55, this investment can be used more freely, taking out sums, as and when needed.

The Ways You Can Access Your Pension

More on the different ways you can access your pension can be found at pensionwise.gov.uk.

Proper Planning is Paramount

When approaching retirement, you need to be aware of these options and how they can be implemented. Planning is key to make your money work for your life style. Consideration for life events, such as a family wedding or a dream holiday, can help you adequately account for your cash and budget accordingly. Great advice and the tools to make it happen are key to striking the balance.

 

The new pension reforms have revolutionised how we can make sure we don’t have to compromise later in life. We think that this is how retirement should be, which is why  the TPI Pension from True Potential Investments, fully supports the new pension freedoms. Keeping your savings invested or switching into a different investment solution, and taking advantage of the pension freedoms can be a great way to watch a nest egg grow, whilst enjoying the benefits of a flexible retirement income. With our market leading True Potential Portfolios you can be rest assured yours, or your client’s money is well looked after, as it should be.

Open a Personal Pension

Your capital is at risk. Investments can fluctuate in value and you may not get back the amount you invest. Past performance is not a guide to future performance. Tax rules can change at any time.

< Back to Blog