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Pension deferred till 2015

A pension fund of £82,000, retirement date June 2014. Would it be beneficial to to wait till the 2015 (new ruilings ) or cash this year?

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02nd May 2014 13:03

It depends what the client wants

The fund is small, so Income Drawdown isn't really an option. As it stands the clients could take 25% tax free cash and the residual amount would need to purchase an annuity.

If they wait, they could take 25% tax free cash and take the rest which would be taxed at the clients marginal rate. Or they could take it over a couple of tax years to reduce tax liability. The benefit of each option depends on the client, and their tax rate.

The rules aren't set in stone at the moment, they could still change before next year. But ultimately, it all depends on the client, what they want and when they want it by. 

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By Glen
07th May 2014 15:49

Pension 2015

Thank you Joe for your information

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