AUTO-BIOGRAPHIES Mulled Wine
Abarth 124 Spider Page 22
Private P Consumer Easter Monday saw the Champion for a generation. The p
pensions’. Yet more ch
Christmas so here’s what eve
Page 7
Page 20
Plus by accessing your funds e than needed you can reduce y ability to make future contributi Yet you’re saying if I want to, just take out all the cash? If y choose to yes, but remember on of it is tax-free. The rest is taxed Pension freedom sounds like current income tax rate like sala something from Braveheart – if you take a huge whack, just lik what’s actually happening? I earn more, some of it will push suspect George Osborne does picture the higher tax bracket. See the himself as a financial freedom fighter. tax calculator at www.mse.me/ta Yet only time will tell whether these to see the various levels. reforms will paint him as the man who If I don’t want to take it all ou liberated older savers, or who can I do? There are many opt exposed them to huge risk. some of them can be combine This is all about how you use your here’s the main ones. pension savings. As always you can Option 1: Leave it in your pens take a quarter of it as a tax-free lump when you need it. Then each t sum. Yet for decades most people withdraw, 25% of that amount have effectively needed to use the free. Eg, if you had £100,000 a remainder of the money to buy an took £20,000 out you’d get £5, annuity – a product that pays you an it tax-free, the rest would be ta income each year until you die. Now your current rate. anyone aged 55 and over can take Option 2: Take 25% tax free, th the whole amount as a lump sum, a flexible income drawdown paying no tax on the first 25% and the product. This is a product you rest taxed as if it were a salary at their keep the rest invested so it can income tax rate. hopefully grow, but you can als Does it apply to all types of to take income when needed. H pension? No, we’re only really talking you get the first 25% you withd private pensions where you and/or free and then the rest is taxed your employer saved up a pot of cash you take it – possibly useful if y likely to be in a lower-tax brack for retirement. Technically these are you’re older. known as ‘defined contribution’ or 'money purchase' pensions. Option 3: Take 25% tax free, th an annuity. This gives you a It doesn’t apply to the state pension, guaranteed income each year nor in the main part does it apply to rest of your life. There are diffe pensions where what you’re paid is a Pagecharges 24 on all of these, and it’s proportion of your final salary – known important to check them out an technically as ‘defined benefit’ always compare different provi pensions. Recipe Eh, I thought annuities were There are ways to convert these final 6 a dodo’s granny? Ac dead as salary pensions into a pot of cash (be Page annuities are a decent concept very careful of scammers), but don’t get the security of knowing exa do it without genuine independent how much you can spend each financial advice and that it’ll last for the rest of y Is it worth taking out my pot as The problem is the rates have soon as I can? Usually not. If you’re crap, and 60% of people just g in your 50s or early 60s you’re from their pension provider rath probably still working towards than checking for better deals, retirement and should be focusing on especially people with poor he putting yourself in a position to have who could’ve got much better enough income when you do retire – TM rates. Yet done right, with som so you want your pension to keep your pension, it can be a usefu growing. for security of income for life.
My Local Magazine
®
Issue 66 | November 2016 | The BEST of Stockton’s Business, News, Reviews and To-Do’s
My local April 2015_Layout 1 30/05/2015 15:16 Page 1
An Interview with Andy Preston
Review Pages 22 & 23 Porsche Panamera Diesel
Page 17 News - 5 minute catch up Pages 14 & 15
Martin Lewis Switch Bank Account Earn £100s
My Local Magazine
April/May 2015 | The BEST of Middlesbrough’s Business, News, Reviews and To advertise callToDo’s Jeremy T: 01642 924847
M: 07533 265 475
We also offer walk in baths and wheel chair friendly bathing solutions.
Contact us today to arrange your free no obligation survey
01642 710733
distributed by Keep Me for 2 Months Famous Flyers www.mylocal-magazine.co.uk call Jeremy T: 01642 924847 M: 07533 265475 E: & jeremy@mylocal-magazine.co.uk BTo advertise OILER S ERVICING REPAIRS 1