Taking cash from your pension early? Important things to consider.
55 years or older and thinking about releasing cash from your pension ? Important things to consider. The government changed the pension rules in April 2015 giving everyone over 55 years old greater pension freedom and options to release cash from their pension pots. You can take 25% of your pension as a tax free lump sum, if you take the remaining 75% it will be taxed at your highest rate as it will be added to the rest of your income. This is great news and a very attractive proposition to release cash in the short term, but it is important to make sure you can fund your retirement longer term. It is estimated that there are approximately 8 million people in the UK between the age of 55-64 and over 1 million pension pots have been accessed since pension freedom. If you are one of the 8 million considering cashing your UK pension early you may want to think about the points below:- The life expectancy of a man aged 55 in the UK is just under 82 years old...