Here’s What to Know Before You Act
You may be considering taking tax-free cash from your pensions before the budget. With speculation that the November Budget may bring further changes to pension rules, it’s understandable that many people aged 55 and over are reviewing their options.
One area that often attracts attention is taking tax-free cash from a pension, but it’s important to be aware of the long-term implications before making any decisions.
Crystallising Your Pension – What It Really Means
When you take your tax-free lump sum, you’re crystallising part (or all) of your pension. This process is irreversible, once it’s done, you can’t “uncrystallise” your funds or change your mind later.
There’s also no cooling-off period, so it’s worth taking time to understand the potential benefits and drawbacks for your personal situation.
Why Timing Could Matter
The Government has already signalled that unused pension funds may be brought into your estate for Inheritance Tax purposes from April 2027.
While the details remain uncertain, understanding how possible rule changes could affect you is key to making an informed decision.
Taking Control of Your Options
Every person’s circumstances are different, from income needs and tax position to family goals and retirement plans.
Before accessing your pension, it’s sensible to review your overall strategy and understand how today’s decisions could affect your future income and estate planning options.
Next Steps
We offer a free 30-minute exploratory appointment to help you understand your options and next steps.
There’s no obligation, and we will confirm my fee before any advice proceeds so you know exactly what to expect.
Please note that we do not advise on final salary (defined benefit) schemes, but can provide guidance on most personal pensions and investment-based retirement plans.
To arrange your exploratory discussion, call 01752 603232 or use the contact form on this website.
Important Information
This article is provided for general information purposes only and does not constitute personal financial advice.
The information is based on current legislation and HMRC rules, which may change in future.
You should not act or refrain from acting on the basis of this information without seeking professional financial advice tailored to your individual circumstances.
Past performance is not a guide to future performance. The value of investments can fall as well as rise and you may get back less than you invest.
Tax treatment depends on individual circumstances and may change in the future.
About LFP Asset Management
LFP Limited trading as LFP Asset Management is authorised and regulated by the Financial Conduct Authority.
FCA Reference Number: 225099
Registered Office: 70 Mutley Plain, Plymouth PL4 6JJ
Telephone: 01752 603232
Email: info@lfpassetmanagement.com
Website: www.lfpassetmanagement.com