Many people have not understood the tax implications of drawing down their money, meaning that savers withdrawing pension cash are handing over millions of pounds in income tax.
Pensions are changing. Old-style defined-benefits pensions are disappearing. State coffers are running dry. And the government is constantly fiddling with the pensions rules. A comfortable retirement is by no means guaranteed.
So now more than ever it’s vital that you build up a healthy pot of money that you can draw on to fund your retirement. At MoneyWeek, we can help you do that. Not only accumulating your pension pot throughout your working years, but also making sure it produces the income you need to enjoy your retirement.
Latest articles on pensions
The chancellor is said to have pension funds in sight once again: specifically the £40bn annual cost of tax relief on contributions.
Savers who have transferred out of generous final-salary pension schemes could be entitled to compensation from their financial advisers, even if the adviser explicitly warned them against it
Check your pension plan to see if you’re entitled to a guaranteed annuity rate, says David Prosser.
Insurer Legal & General is to take on responsibility for paying the pensions of 22,000 members of the British Airways pension scheme.
Plans to make company pension schemes publish details of how they have taken members’ ethical views into account when investing their money have been scrapped.
More than one in four master-trust pension schemes – which look after the retirement savings of millions of savers – are set to close.
Savers are using the pensions freedom rules to dip into their retirement funds at an alarming rate, says David Prosser.
Fewer than one in five divorces where a financial award is made include provisions for pension sharing, says the Ministry of Justice.
Phoenix Life, the pensions company that specialises in taking on other insurers’ historic savings plans, has dropped exit fees for customers who have benefits worth less than £5,000.
Overly generous transfer payments to savers leaving defined-benefit pension schemes could jeopardise the pensions of those remaining, says David Prosser.