Pension Freedom – How to make your pension work for you

Krys Mayoh

Client Support - Wealth Management

Radical changes were introduced to private pensions from 6th April 2015 creating new freedoms to make the most of your pension savings.

What are the new options?

From the age of 55, there are 3 broad options you can consider to unlock your savings:

  1. Take the whole amount as a lump sum (25% tax free, the rest taxed at your income tax rate)
  2. Take 25% tax free and invest the rest in a flexible income drawdown product
  3. Take 25% tax free and buy an annuity

Alternatively, you may decide to keep your existing pension, particularly if you are still working towards your retirement.

How does this affect people under 55?

You can only take cash out of your pension once you are aged 55 and over.  However, in the meantime, saving in a private pension fund may be a more attractive option with the new flexibilities available from the age of 55.  A private pension will continue to effectively save for your future from your pre-tax income.

Where can I find out more?

If you would like to find out further information about the changes have a read of our blog post here.

Hallidays are here to help

We can review your existing pension arrangements and provide support in selecting the option which is right for you, giving peace of mind that everything is in place for your financial future.  Please contact us on 0161 476 8276 or email

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