The UK Government has just tripled the amount you can take from your pension pot before retirement to pay for professional financial advice – from £500 to £1500.
This is great news for anybody hoping to lay down a secure retirement, because it means you can get the ball rolling with a professional adviser far sooner than was previously possible. Getting a plan in place early is the key to long-term investing that underpins all robust retirement planning.
Even if you’re still in your 20s – take a weight off your mind once and for all and take advantage of the Government offer (before it changes!).
Simon Kirby of the Treasury said that the Pension Advice Allowance, which will go live in April 2017, would encourage people to consider saving for their retirement at any age. The scheme allows up to three withdrawals of up to £500 for regulated advice on any valid aspect of retirement planning (not just pensions) – and, critically, these withdrawals may be made at any age.
Kirby said, “Pensions and savings decisions are some of the most important a person will make during their lifetime. This allowance will help people get the vital financial help they need to plan for their retirement.”
The Pension Advice Allowance
|First mooted:||March 2016|
|Idea from:||Joint Financial Advice Market Review (FAMR) of the Treasury and the Financial Conduct Authority (FCA)|
|Consultation Paper launched:||August 2016|
|Announcement – Allowance to be tripled:||February 2017|
|Goes Live:||April 2017|
How it works:
|Total amount withdrawable:||£1500|
|Total number of withdrawals:||3|
|Withdrawal restrictions:||Only 1 withdrawal per tax year permitted|
|Traditional face-to-face advice||Yes|