Taxing the much loved 25% pension commencement lump sum may well be in the Chancellor’s sights.
Job schemes, stamp changes, VAT reductions – all good news about spending and stimulus but how is it going to be paid for? Let’s enjoy our moment in the sun but make sure we are well prepared when the time comes to pay for it.
One of the tax perks which may well be under threat is the much loved 25% tax-free pension commencement lump sum – available to many of us from age 55 even if we don’t start to draw a pension.
If you are over 55 with a substantial pension fund (over £200,000) you should be thinking about accessing that lump sum whilst it remains tax-free.
You could use a financial adviser to organise this for you but it could get quite complex and involve you in some hefty fees. Using one of the non-advice on-line financial platforms could be far more user-friendly and cost-effective.
If you would like to know where to start just use this link to book a quick, no-cost Zoom chat and I will put you on the right track.
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