Between April 2015 and September 2017, *72% of people dipped into their pension pot before the age of 65. In fact, some people have even withdrawn it all! Hang on, did we just say before the age of 65? That’s right. From the age of 55, you have the option to take lump sums of money from your pension, the first 25% of which is tax free. But why are so many people thinking about taking money from their pension pot early?
|Primary reasons||% of people||Secondary reasons||% of people|
|Tackle a debt||31%||Make home improvements||19%|
|Make home improvements||22%||Tackle a debt||16%|
|Buy/repair – car/van/motorbike||11%||Take a holiday||15%|
|Help family||9%||Put in savings||14%|
|Take a holiday||8%||Buy/repair – car/van/motorbike||13%|
There are more options available. To make the right pension decision for you, the best thing to do is to speak to a financial adviser regulated by the Financial Conduct Authority. Taking money early from your pension might not be right for you, as it will leave you worse off in retirement; it shouldn’t be seen as an easy way to raise money. That’s why it makes sense to get financial advice before making any big decisions.
As pension advice specialists, here is what Pension Access can provide you:
We are authorised and regulated by the Financial Conduct authority. This means we can help you to make the best possible decisions when it comes to your pension.