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Guide to new Pension Freedom

30th July 2015

The Government’s fagship pensions freedom policy comes into force on 6 April 2015 and will give far greater fexibility over what someone can do with their pension. The new rules should give people more confdence to save into a pension because they will retain much more control over their money. Currently, most pension schemes don’t allow people to take small amounts of money at different times. Also, at the moment, all pensions allow 25% of pension money to to be taken tax- free, but most people have to take this lump sum within 18 months of them becoming eligible for their pension income. They could then use this to buy an annuity, which would provide a fxed income throughout retirement or convert …

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