Leave a legacy
You may already have enough income to live so you may decide to use your pot as a legacy to your loved ones.
If you are still working or you have stopped working but you have other income from savings or investments then you may want to delay using your pension beyond your retirement date.
Continue to build your pension
Many people, if they have this option, will want to continue to build their pension pot so they can have more money when they retire. If you decide to do this then you can continue to get tax relief on pension savings of up to £40,000 or you net relevant earnings, whichever is lower each year until age 75.
However, if the value of your total pension savings is above the lifetime allowance (currently at £1,073,100) for tax year 2023/2024 you will have to pay extra tax when you access your savings or at age 75.
If you die before the age of 75 then the money in your pension pot can be passed on tax free.
If you would like to talk to us to find out the options available to you, please get in touch today.
Considerations
- Funds that remain invested can go down as well as up which would have an impact on the level of the pension benefits available.
- All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.