Pension Freedoms

Pension Freedoms give you choice about how you use your pension savings.

Pension Freedoms were introduced in 2015, removing the previous restrictions about how people could use their pensions in retirement.

This has led to greater consumer choice, but is not without its own risks.

Another feature of Pension Freedoms is the taxation of pensions in the event of death. Pensions had always been exempt from Inheritance Tax but the new rules meant no tax at all would be due if the pension holder died before the age of 55. 

Unfortunately, Pension Freedoms didn't change the age when people could start to access their pensions, or how these are taxed when in payment. 

From the saver's point of view, Pension Freedoms open the door to flexibility and choice in retirement.

Read on to find out more about the choices available to you.