Pension changes

• You can buy an annuity or leave your pension savings invested and withdraw money whenever you want (with no limits on how much you take or when).
• You can withdraw all of your money from your pension pot and do whatever you want with it (only 25% will be tax-free, the rest will be taxable).
• You can take all your pension savings and spend it in any way you choose.

There are other changes too:

• A government service called Pension Wise has been set up to give free guidance on the options available. To book an appointment call: 0800 138 3944 (8am to 10pm everyday) or visit pensionwise.gov.uk.
• If you die before age 75 there will be no tax on any benefits payable to your beneficiaries (as long as paid out within two years).
• On death after age 75, any money paid out will be added to the income of the person who receives it (and taxed accordingly).
• A new state pension scheme started in April 2016. Most people retiring after this date will receive a maximum flat rate payment of £164.35 each.

Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.