Treasury to net £1.6bn extra tax when pension freedoms kick in - Hargreaves

The Hargreaves-commission Ipsos Mori survey found more than one in ten, or about 12%, of savers with a defined contribution (DC) pension planned to take all of their pension in one go. However, when questioned about the tax implications of such a move only two in five, 38%, could accurately state how much tax would be deducted from a medium sized pension pot. The proportion who could accurately predict what rate of tax would be applied to large pension pots was less than one in ten (6%). Hargreaves Lansdown said the information gap was a “significant cause for concern” in light of ...