Under proposals published by HM Treasury, pension savers would be permitted to draw £500 tax-free from their personal pensions to pay for advice on retirement planning. No decision has yet been taken as to the minimum age at which the withdrawal could be made, but this is likely to be less than the age of 55 at which other withdrawals are permitted.
Employees will have access to a total allowance of £1,000, because in addition to the standard allowance, a further £500 allowance is to be made available as a tax-free perk to employees seeking advice in relation to their employers’ occupational schemes.
To qualify, the advice would have to be provided by a regulated firm.
For more information, please contact one of our advisers.