Omnium Wealth Management

A quarter of over-55s unaware of pension tax

Do you know how much tax you will have to pay if you withdraw some or all your pensions savings as cash?

If you don’t, you’re not alone. A recent survey conducted by Legal & General showed that 27% of people believe they can access their pension pot tax free.

Sadly, they’re wrong, as only 25% of the amount withdrawn is free of tax. Income tax is payable on the other 75%.

Another little-known fact for many people is where their pension money is invested. Figures from the FCA tell us that a third of people that have recently invested in pension funds are not sure where their money is.

Emma Byron, Managing Director at Legal & General, said:

“None of us spend as much time as we should thinking about pensions and retirement planning, but leaving important decisions about later life to the last minute could potentially leave you poorer in retirement”.

Your pension pot is likely to be your largest asset after your house, possibly even your largest, and will have taken a working lifetime to build, so it is unwise to take risks by not fully understanding it.

We can talk you through how much you need to save to have the retirement lifestyle you want, where to invest, both before and after retirement, and any tax implications.

Get in touch

Speak to us today on 01483 205890 about your retirement planning strategy.

Interested in finding out more? Read our guides:

          Tax Planning Guide 2018-19          

      Guide to Planning for Retirement      

      Providing for the Next Generation    

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