Pension freedom tax liabilities remain misunderstood - Fidelity

The company said its staff had dealt with 1,300 calls in the week leading up to Easter, with many customers unsure about the tax position on withdrawals. New rules allowing over 55s to access their defined contribution pension funds, with the first 25% tax-free and the rest taxed as income, came into force on Monday 6 April. Fidelity Worldwide Investment head of retirement Richard Parkin said while people are aware there could be some tax consequences the detail of how emergency tax works "has not really been picked up". He said: "It does take a fair bit of explaining. We are very ...