Pension rules retirees should look out for in 2020

Brewin Dolphin reports “People entering or approaching retirement in 2020 should carefully plan how and when to access their pension, in order to maximise annual allowances and tax-free benefits.”

“According to wealth manager Brewin Dolphin, there are a number of factors people approaching retirement should consider before making any decisions about accessing their pension pot. The Covid-19 pandemic has impacted many families’ circumstances, not least from a financial perspective.  While stock markets are beginning to recover from the initial crash, a report by Moneyfacts estimated that the average pension fund fell by -15.2% during the first three months of the year.” 

“Under current rules, retirees or those who reach the age of 55, can withdraw up to 25% of their defined contribution pension pot as a one-off, tax-free lump sum. While this option can give your bank balance a short-term boost, it has a potential knock-on effect for future income.”  Read the full article.