Government mulls multiple use of pension advice allowance

£500 of pension savings tax-free to fund advice

Carmen Reichman
clock • 4 min read

The government is considering allowing people multiple uses of a £500 tax-free retirement advice allowance so they can seek advice at different points in their lives.

In a consultation out on 30 August, the government said it wanted people to be able to withdraw money from their pension pots to pay for regulated advice more than once but that each withdrawal would be limited to £500. Recognising some would benefit from the measure more than others, it proposed limiting the amount of times consumers can access the tax-free cash. It said: "The government is considering permitting savers to use the allowance more than once. This would allow people to take advice at different stages of retirement. "There is a trade-off to be made. Allowing multiple ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read
Pension freedoms exposed a longevity problem we still refuse to confront

Pension freedoms exposed a longevity problem we still refuse to confront

'The gap between product complexity and consumer understanding is not narrowing'

Julia Fintz
clock 11 March 2026 • 4 min read
Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Administration expected to conclude in 2027

Isabel Baxter
clock 10 March 2026 • 3 min read