How pension freedoms have affected company pensions

FT Adviser reports “When pensions freedoms were introduced in the 2015-16 tax year, they gave people the opportunity to do things differently. One of the freedoms that piqued people’s interest was the new option of taking the whole amount of their pension as a lump sum, if over the age of 55.”

“Employees with a defined (DB) company pension, started to think about transferring it, to be able to access what in some cases could be a considerable sum of money.  Cashing in this lump sum became a popular choice for the over 55s.  Only a year or so after the introduction of pension freedoms, the FCA announced that accessing pensions early had become the “new norm” – with the most popular option to withdraw the whole lot.”  Read more