Take steps to make sure your pension lasts as long as you do

PUBLISHED: 00:00 28 August 2014

Make your financesare in order

Make your financesare in order


Expert advice from chartered financial planner Julie Wilson

The most radical changes to pensions in almost 100 years were announced in the Chancellor’s 2014 Budget. Almost overnight, ‘vulnerable pensioners’ have become ‘empowered investors’ who will be allowed to access their entire pension fund and use it as they wish. Previously, restrictions applied to how much of your pension pot could be taken in exchange for the valuable tax relief you’d have enjoyed as you saved up. None of that nonsense in future; you can have the lot. Twenty five percent of it tax-free, as is the case now, and the balance taxed at your highest tax rate. Worryingly, research already shows a significant number of pensioners are intending to take out their entire pension fund and put it in the bank. Proof, if it were needed, that consumers are a bit befuddled by the tax consequences of doing so. Because investments within a pension fund grows virtually tax free. But if you take it all out, you’ll be taxed on everything above 25 per cent of the pot – and that tax could be as high as 45 per cent (depending on your other income). And then when you put it on the bank you’ll be taxed again.

The good news is that the Government is intending to provide impartial financial guidance by independent bodies to everyone approaching retirement. The bad news is that it looks like that guidance is going to be delivered by the Money Advice Service – the very same organisation about which Treasury Select Committee chair Andrew Tyrie, expressed ‘serious concerns’ and money savings expert Martin Lewis described as ‘an atrocious waste of millions of pounds of public funds’.

I’ll be uncovering more of the fine print of the new flexible pension regime next time and outlining some of the key issues you need to think about if you want to make sure your money lasts as long as you do.

Julie Wilson is a director of Pen-Life Associates, independent financial advisers in York, Sheffield and Leeds


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other Yorkshire Life visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Yorkshire Life staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Yorkshire Life account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from Out & About


The days may be short and cold, but there is still magic to be seen in Yorkshire’s winter wonderlands. Sam Twyman and Clea Grady from Yorkshire Wildlife Trust share their favourite winter tips

Read more
Wednesday, December 5, 2018

Enjoy the views into the Yorkshire Dales and, dare we say it, towards Lancashire during this lovely walk

Read more
Friday, November 30, 2018

It’s an all-year-round project putting together a merry welcome at one family country house

Read more
Tuesday, November 27, 2018

George and Gerald are determined not to go to sleep on Christmas Eve. Tucked up snugly in bed, they want to stay awake to see if Father Christmas brings them a little something for being good boys all year long. Gerald has his fingers (and toes) crossed for a fire engine.

Read more
Tuesday, November 27, 2018

Banish the loneliness of the digital world and head for real life retail therapy at a historic market place, says Richard Darn

Read more
Monday, November 26, 2018

What next for a former Harrogate spa hotel and public house?

Read more
RHS Harlow Carr
Friday, November 23, 2018

When the festive frenzy gets too much, just head out of town.

Read more
Fountains Abbey
Tuesday, November 20, 2018

Treat yourself to a luxury break while exploring the beautiful area surrounding the North York Moors national park.

Read more
Friday, November 16, 2018

Depending on wwho you ask, Hebden Bridge is a place for artists, commuters and hippies. Walkers also love this market town for its proximity to some fine West Yorskhire countryside.

Read more
Hebden Bridge

Topics of Interest