Accessing Cash From Your Pensions
Episode description
In this week's show, Tony covers two vital topics - how to access small cash sums from your pension pot, and the pros and cons of cashing out your pension entirely if you wish to do so.
KEY TAKEAWAYS
- For each cash withdrawal, the first 25% is tax-free. The rest comes as a taxable income. Be aware that each withdrawal may involve a charge.
- Once you take money out of your pension pot, any growth in its value is taxable. Lump sums could reduce your entitlement to benefits.
- If you're planning to put the money you've taken into savings or other investments, you should always compare and consider inheritance tax
BEST MOMENTS
'Most people underestimate how long their retirement is going to last for'
'Without very careful planning, you could run the money and have nothing to live on'
ABOUT THE HOST
Tony Thomas is a published author, one of the top financial advisers in the UK voted for by his clients, the first Chartered Financial Planner in the UK, Independent Financial Adviser, Mentor, Trainer. Life Planner and Money Coach. He is also a pension and investment specialist as well as the regional Chartered Champion for South Wales.
“Live For Today, Invest For Tomorrow”
CONTACT
Tony's official website: https://ttwealth.co.uk/
Facebook: https://www.facebook.com/TonyThomas.IFA/
LinkedIn: https://www.linkedin.com/in/tonythomas2/
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