The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
Tax treatment depends on individual circumstances. Tax treatment, rates and allowances are subject to change.
As a result of fears that some pension savers are making poor and uninformed choices, MPs on the Work and Pensions Committee have launched a review into the retirement income market.
Some of the reasons behind this are people are falling for pension scams, and taking money out of their pension early could be putting their future financial security at risk. The Financial Conduct Authority has found that taking cash out of pensions before the age of 65 is becoming more popular, with most people opting to take out a cash lump-sum. This could mean running out of money in later life and possibly being stung with higher than necessary tax bills.
For people who are unfamiliar with the complexities and choices available when looking at their pension options, making the right choices can be very difficult. You don’t have to take your pension from your current pension provider, you can opt to keep your pension pot invested and draw cash from it, or take a lump sum out of it, or even take out the whole lot! Each option has its pluses and minuses. The only way to make an informed choice is to take professional pensions and financial planning advice from your qualified local Financial Adviser.
At Four Oaks Financial Services, our initial consultation is at our cost. Contact your Adviser or our Client Liaison Team to make an appointment.