Pension pots can now be taken as cash.!!!
The national press loved the idea that we could all spend our pension funds on a Lamborghini. So what is the truth of the situation?
The truth is that pension savers always did have more than the one option of an annuity for their retirement income. In fact depending on the size of the pension fund, up to nine options could be assessed. After the budget there is now one more.
Surely though we would all take the cash option?
Taking all the fund as cash is potentially subject to income tax at the investors marginal rates! Some of the fund could be taxed at 40% or even 45%.
My guidance is to take advice from an Independent Financial Adviser. This is one of your more important decisions in life.