In 2015, the retirement rules were rewritten. The rules, which came into effect from 6 April 2015, have changed the way people take money out of their pensions, with new freedoms and options available to anyone over the age of 55.

Pension freedom tax rules allow members of defined contribution pension schemes to access their pension savings early, provided they have reached the required minimum pension age (currently 55).

Flexible withdrawals

Scheme members can now take their pension benefits in a number of ways. This could be as one or more payments a year for a number of years, several payments a year over a shorter time frame, or the full value of the fund could be taken in one payment subject to Income Tax.

If you’re 55 or over and have a defined contribution (money purchase) pension plan, you can:

Leave your pension pot invested; buy a guaranteed income for life (a lifetime annuity);

Take a flexible income from your pension pot (typically known as ‘flexi-access drawdown’; Take a cash lump sum from your pension pot (up to 25 per cent tax-free)

Combine one or more of the options above. You can take cash and/or income at different times to suit your needs

Making sure you manage your money well in retirement is important. It can affect how long your pot lasts and the kind of lifestyle you can afford. We can help you make informed decisions about your retirement.

The above was provided by Hartey Wealth Management Limited. Registered office: Hilliards Court, Chester Business Park, Chester, CH4 9QP. Tel: 0808 168 5866.

Hartey Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority