Friday November 3rd 2017
Ms Grahame with Mr Heard
Local MSP Christine Grahame met recently with Iain Heard, PensionWise Guidance Specialist at the Citizens Advice Bureau, who gives guidance on the Pension Options available to those seeking to cash in some of their pension pot prior to retirement.
Current UK pension legislation allows for up to 25% of the persons pension pot to be taken as tax free cash, however the rest is liable to tax in whatever option is chosen. This option is available from the age of 55 for those with Defined Contribution Schemes.
Commenting, Ms Grahame said:
“I hadn’t realised myself all the complexities of cashing in some or indeed all of your pension fund and the implications for additional tax and loss of pension. You can access guidance on options through Iain and I would recommend that anyone thinking of accessing their pension funds get in touch with him or your local CAB for an appointment.
“It’s all too easy to make a mistake which is avoidable with a bit of guidance and thought because what has become very clear is people are still making decisions without any consultation whatsoever. This is a huge concern as there are instances of people making choices and then being considerably worse off financially either in terms of tax paid or loss of benefits due to their choice.”
Mr Heard added
“Accessing a pension is on a par with arranging a mortgage in terms of financial decisions and this cannot be done without seeking advice either directly or independently. Whilst advice or guidance is not compulsory before accessing a pension I am keen to try and make sure as many people are aware of the Pension Wise service as possible.”
Pension Wise was created to provide free guidance to help people make more informed choices about their pension pots. This has in many cases led to clients taking Financial Advice which they possibly would not have done and others who have been able to make their own mind up without the need for advice.
You can find details of your local PensionWise services by getting in touch with your nearest Citizen’s Advice Bureau.Tweet Share on Facebook