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Any Financial Advisors Out There


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I saw a financial advisor on the the telly once. He was on of those 'buy a property abroad things'. Twas about 10-15 years ago he had lots of money, retired at 50, advised people on mortgages,presumably endowment schemes.Oh sorry, you're on the other side of the fence, probably not relevant.

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Probably the biggest issue is the tax paid on pension funds when withdrawing cash.

After tax free 25%, any other "lump sum" withdrawal is classed as income and you will be taxed at the rate

it puts you into.

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Probably the biggest issue is the tax paid on pension funds when withdrawing cash.

After tax free 25%, any other "lump sum" withdrawal is classed as income and you will be taxed at the rate

it puts you into.

Is it tax free 25% or £25k ?

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25% of the fund value can be taken as tax free cash, with the rest taxed at emergency rate, if taken as a one off. This means any taxed lump sum of over around £3k will initially be taxed at 40%, with anything over around 13k @ 45%. You will get that tax back from the revenue, but worth bearing in mind if you have plans in short term with the money.

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Not unless you go into something called drawdown, that enables you to take the tax free cash only, leaving the remainder in the pension environment.

To do that you'll need proper (paid for) advice from a qualified adviser, it'd be worth it if you have a reasonably sized pension pot.

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So can you just take 25% and leave the rest as is/?

Aye, but it doesn't apply to all pension funds. Although you could be forgiven for thinking it does from listening to the TV news programs. The new rules don't apply to defined benefit pension funds.

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Aye, but it doesn't apply to all pension funds. Although you could be forgiven for thinking it does from listening to the TV news programs. The new rules don't apply to defined benefit pension funds.

Having said that there were already rules in place which allowed you to take 25% of a defined benefit pension fund tax free. I don't think those rules have changed.

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