BlackRock client busts second line of defence with £300k pension withdrawal

Jenna Towler
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A BlackRock defined contribution (DC) saver has used pensions freedom to cash in a £300,000 pot despite warnings he would be hit by the 45% additional tax rate.

The fund house and DC pension provider said the case its biggest encashment since pensions freedom and choice was introduced in April. BlackRock head of retail Tony Stenning described the case as "extraordinary". Pensions freedom gave DC pension savers complete access to their savings from the age of 55, subject to marginal rates of tax. The 45% additional rate tax band kicks in on incomes over £150,000. Further reading: Savers extract £1.8bn in first two months of pensions freedom The Financial Conduct Authority introduced ‘second line of defence' rules to ensure retirees set on...

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