Much attention has been given to high earners being those who will be most affected after A-Day, however, amendments made after 6 April 2006 will leave more and more people requiring ‘sensible' pensions advice, says Bee.
Head of pensions strategy at Scottish Life, Steve Bee says a key illustration of the extra advice required will relate, in particular, to how tax-free cash will work come A-Day. Writing on his Beeline website, Bee says while most people think tax-free cash from money-purchase pension schemes after A-Day will be 25%, this is not the case as the amount which could be claimed could be up to as much as 45% of the fund, depending on how people elect to receive their retirement benefits. Likewise, Bee adds individuals may only receive 25% for the same reason. Bee says: “After A-Day the ta...
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