What the New Pension Reforms mean for you.
April 2015 saw radical new pension reforms, opening up new possibilities for savers over the age of 55. Although savers were always permitted to take an initial tax-free 25% out of their pension pot, now, for the first time, pensioners can take their pension in its entirety in one lump sum. They may also choose to take a series of smaller lump sums. However, any withdrawal over 25% will be subject to tax. Though this may seem like a revolution in finances, many pension experts have said these reforms were inevitable, noting that they were already manifest in the previous system under the banner of ‘phased retirement’ or ‘vesting’.
