We’ve had a lot of questions recently about the tax free element of a personal pension, so thought it a good time to address some of the concerns.
Typically, people want to know both the upsides and the downsides of taking part or all of the 25% tax free element of their pension.
When looking to access cash, another common question relates to whether the tax free element should be the first port of call or should cash from other assets be accessed first. This may be tax free cash but does it still come with a tax implication? Well, it depends on what you do with the cash.
Since the pandemic there’s a lot of speculation around how the government will raise the money to pay for underpinning the economy. Could the tax free cash allowance be reduced? We have our thoughts on that.
And finally, should the tax free cash be taken before you reach 75 years of age? Another popular misconception, which we cover in this short audio.
Click the image to find out the answers to these frequently asked questions.
Pension: Free Tax Cash Checklist
If you have a question as a result of this article please feel free to get in touch