Personal Pension

The Treasury have announced that it is now possible to withdraw up to £1,500 from your pension pot, tax free, in order to pay for financial advice.  

This rule change comes into effect in April this year and allows you to withdraw £500 at a time, three times per year, to use in payment for financial advice and retirement planning. It can be used to pay for any regulated financial advice in relation to any type of Personal Pension, but it does not apply to Defined Benefit or Final Salary schemes.

This move was inspired by the fact that those who take financial advice save an average of £98 per month more into their pension pots. The government are clearly attempting to encourage pension saving by allowing the public to become more educated on the benefits of retirement planning.

Whilst this allowance may be most beneficial to those who find paying for financial advice more of a financial burden than yourselves, you may be able to pass on the information to your children, friends or family who may benefit from accessing financial advice regarding their pensions.