With
the new changes to pensions there is even less reason to opt out of a workplace
pension. It has always been the case that an employer pension contribution is
free money but what stopped people taking it up was the fact that people were
limited to how and when they could draw that money back.
Not
so now. Benefits will be able to be drawn from 55 from 2016, in full, so no
need for people with a small fund to sign up to a potentially expensive and
inflexible annuity. The combination of tax relief up front, a top up from the
employer and much more flexibility on when you can draw out is hard to beat.
A
classic example is people close to retirement. So many ask me whether it's worth
joining an auto enrolment scheme for such a short time. The answer is most
definitely yes! Even before the new rules are implemented in full it is
possible to build up a pot of up to £10,000 which can then all be drawn as a
lump sum (25% is tax free and the balance taxed as income). No brainer!
Nick Rudd
Corporate Benefits Director
Telephone: +44 (0)20 7893 3456
Email: contactus [@] broadstoneltd.co.uk
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