Page 30 - Phonebox Magazine December 2014

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Finance Matters
Are you looking to take benefits from your pension in 2015?
As discussed in last month’s article, there have been a number of very important changes to pensions announced this year. As is usually the case, this has thrown up a few anomalies and opportunities which will only be available for a short period of time.
One of these is the use of ‘Capped Drawdown’. This is the current legislation whereby you are able to use your pension pot to provide an income rather than purchase an annuity to provide it. There is a limit on the amount of income you can take but generally speaking it is well in excess of that which you could purchase with an annuity.
This will change from April next year as there will no longer be any limit on the level of income, instead you will be able take whatever you like (although this will potentially have adverse tax consequences). If you take advantage of this new flexibility there is a reduction in the maximum that you are able to contribute into a pension, from £40,000 per annum down to £10,000 per annum. However, if you are already in Capped Drawdown prior to April
2015, you are able to keep the £40,000 limit provided the income you take does not breach the capped level.
Depending on your circumstances, there may therefore be an opportunity to cement the £40,000 limit prior to April next year, avoiding the reduction to £10,000. This may be particularly attractive to those who have earnings that fluctuate greatly from one year to the next but wish to take benefits from their pension whilst still earning.
If you would like to discuss or review your own investments or pensions, or look at how we can help implement a strategy for retirement then please call us. Initial meetings are without cost and we are happy to come to see you in the comfort of your own home. See our advert below.
This article does not constitute advice and should not be taken as a recommendation to undertake any course of action mentioned without consulting a relevant professional.
What would your future hold if you could make your money go further?
...if you had invested £1,000 in the best performing IMA Investment Fund at the beginning of 2013 it would have been worth £1,676 by the year end, but if you had chosen the worst, it would have been worth just £342!
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Speak to the experts...
Speak to Advison now on 01908 239555
www.advison.co.uk
Advison Ltd is an appointed representative of In Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Registered (England) No. 5009271
30 Phonebox Magazine
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