For drawdown plans effected after 26th March 2014, the maximum amount of income that can be taken during a ‘pension year’ will changed from 120% of GAD to 150% of GAD. For drawdown plans effected before this date, the maximum will remain at 120% of GAD until the end of the ‘pension year’.
This has been welcome news and compliments the more widely publicised pension reforms announced by the Chancellor in his Budget 2014.
Of course, deciding what to do with your pension provision at retirement nevertheless still remains one of the more challenging, necessary and also complex areas of Financial Planning. Having the maximum threshold raised is one thing – knowing how to take advantage of it as well as other rules or opportunities is likely to be more important. If you are thinking about retirement, taking some benefits already or even if you are many years away from this point, you would do well to plan it carefully, check how your plans may affect your ongoing cash flow and ability to meet your future liabilities and expenditure and take any required action early rather than leave it.
If you need advice or support with this then please do get in touch. That’s why we are here!
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