10 Questions to Ask Yourself Before You Cash in Your Pension

Since freedoms were introduced last April which allowed retirement savers aged 55 and older to cash in their pension pots there has been a dash to cash - pause before you follow suit

Emma Wall 8 March, 2016 | 10:40AM

With less than one month left of this tax year time is running out for ISA and pension investors – or anyone looking to boost their savings and reduce their HMRC bill. Read our Guide to ISAs, Pensions and Tax-efficient investing to make sure you don’t get left behind.

Two thirds of Britons will work past retirement age; 80 years of age is the new norm for handing in your final notice according to insurer Royal London. These figures no longer come as a surprise to those saving into a pension, the demise of gold plated final salary schemes coupled with longer life expectancy means we will need to be earning for longer. The unknown is what retirement will look like once we eventually get there.

It has not yet been a full year since George Osborne’s pension freedoms were introduced last April, allowing every pension saver over the age of 55 access to their pot. When the plans were announced in the March 2014 Budget there were concerns that a Lamborghini culture would emerge; pensioners would splurge their retirement savings on fast cars and holidays rather than sustainable investments to provide a multi-decade income.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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