Five things to know before accessing pension freedoms
By Cristian Angeloni, 9 Apr 20
During the first bear market since they were introduced
Do you want to spend your pension or leave it to loved ones after you die?
Selby continued: “Pensions are no longer just about providing an income in retirement. Since 2016, savers have been able to pass on leftover pensions tax-free if they die before age 75.
“Where the pension holder dies after age 75, the remaining funds will be taxed at their recipient’s marginal rate when they make a withdrawal.
“For those who want to leave assets to loved ones, it therefore often makes sense to leave as much of your pension untouched as possible in order to minimise your tax bill.
“This means when you come to flexibly access your pension for the first time, you should think not just of your retirement income strategy but also your IHT plans.
“For those who want to pass their pension on to loved ones, it’s important to ensure your nominated beneficiaries are up-to-date so the right people inherit your pot,” he added.
Tags: AJ Bell | Covid-19 | Pension Freedoms | Tom Selby
