What will be your source of income after you’ve retired? Under new rules introduced from April 2015 you can take the whole of your pension pot as cash in one go if you wish,Pension reforms have given us all more freedom in how we use our pension savings.
Taking a large cash sum could reduce any entitlement you have to benefits now, or as you grow older but you can cashing in your pension to clear debts, or invest in property even property development. Not all pension schemes and providers offer cash withdrawal so get guidance or advice
Types of pensions
- Personal Pension and retirement accounts
- Self-invested personal pensions (SIPPs)
- Stakeholder pensions
- Defined contribution pension schemes
- Small self-administered pension schemes (SSAS)
- NEST pensions
You get the tax back you've paid on all contributions, if you're under 75, subject to an annual allowance. If you are a higher rate taxpayer you can claim an additional tax relief.
Whatever you decide to do with your pension pot you don’t have to stay with your current pension provider. You can choose to shop around by yourself or with help from a financial adviser.