Ask the Experts: Pensions

Answers: Fiona Tait: - Scottish Life Prior to age 75 it depends on whether you have crystallised your pension (taken any benefits). • If no then the full value of the pension fund is available as a lump sum, almost certainly free of inheritance tax*. • If yes then the value of the pension fund may be paid as a lump sum but will be subject to a 35% tax charge. • As an alternative it is also possible in both cases to pay a pension income to, or purchase an annuity for, any financial dependents (but the majority of clients take the lump sum). • Some clients chose to partially crystallis...