For months we have been hearing that "Pension Freedom is Coming", whilst this has sounded almost as ominous as its Game of thrones counterpart, there is no need to panic – the changes are here, and with some basic financial advice you might just survive them, and even reap the benefits.
People aged over 55 can now take advantage of the changes aimed at transforming the way we save and spend before and during our retirement. There has been a flurry of interest around the new pension freedoms and a forest of information to wade through on what you should be doing and what you will need to do in the future.
However, although "Pension Freedom" day is today, you don't need to act right away. Its Easter Monday, you have better things to do – as do those working in financial firms. It is anticipated that Tuesday will be exceptionally busy for firms with many over 55's looking to withdraw their pension cash. On Tuesday you may face long telephone queues and other difficulties as firms may struggle to deal with the influx of enquiries. It may be best to wait a while until the initial rush has settled down.
In the meantime, seek some financial advice. An independent financial advisor will be able to assist you in making the best decision for withdrawal of your pension fund, including how to mitigate income tax liability.
We also enjoy this article from the Telegraph about exactly how not to celebrate pension Freedom Day.
New UK Pension Rules in 2015
Furthermore, here at Unlock the Law we will be keeping up to date with how the implementation of the changes work for financial firms and if you would like to know a little more about the changes.