From 6 April 2010 the minimum age that pension benefits can be taken rises from 50 to 55.
Even if you were not thinking or retiring in the traditional sense this change could still affect you. If you were thinking of taking any benefits from your pension, for example the tax free lump sum, income or indeed both and you are aged between 50 and 54 you have until 6th April 2010, less than three months to make suitable arrangements, if you don’t you will have to wait until you are 55.
This change could well have a significant impact on your retirement plans as you may not be able to access your pension benefits when you want, and many people don’t even realise this fact. Furthermore many people do not realise that they it may be possible to access the tax free lump sum from their pension without having to take an income. Combine these two issues together and you may miss out on a significant opportunity.
Taking pension benefits early can be unsuitable in many circumstances and will clearly reduce the amount of income you have in retirement. However if you feel that this change effects you then you do need to act now to ensure your arrangements are suitable for your needs before the deadline, which in practice is even sooner that 6th April 2010 as in some cases it can take weeks to make sure the affected pension pots are safely transferred into a suitable arrangement.
It’s important to take steps sooner rather than later to ensure that the necessary arrangements are in place before the 6 April 2010 deadline.
We firmly believe that when considering such an important area of your financial planning Independent Financial Advice is crucial.
At Investment Sense we offer initial meetings with no cost or obligation, we will prepare a report into your options and present it to you, allowing you take make an informed decision.
Time is crucial for those that are affected, should you wish to make an enquiry or receive advice please click the link below, complete an enquiry form and we will contact you immediately to discuss your requirements.
