A bit of a financial health warning: don’t take pension annuity rates if you want tax-free cash if you’re considering such a move before April. The current UK Pension Regulations change in April this year and the age that you can take pension annuity benefits will increase to age 55 from age 50. It is therefore very important for all those pension savers under age 55 to act pretty quickly to unlock some of the billions of pounds of tax-free cash from their hard earned pension funds, or wait years before they get another opportunity. Mind you, I’m not suggesting that you actually buy an annuity; no, the annuity rates on offer would be too low. All we are talking about here is accessing some or all of the tax-free cash entitlement.
The amount of tax free cash that can be taken from a pension pot before an annuity has to be purchased is limited to 25% of the fund value. This money can come in very handy to pay off debts you might have, such as a mortgage, or provide university fees for your (needy) children. It is usually a good idea to speak with an annuity specialist to get financial advice. They will know the best route to go down and can advise on the annuity rates situation. Naturally, we can assist, just give us a call on 0800 077 35100800 169 1256.
