Outflow of monies from Pensions

Outflow of monies from Pensions

Outflow of monies from Pensions – Savers have withdrawn £1.8 billion from their pensions in two months. This is a massive outflow of monies from pensions and is being withdrawn at an alarming rate of £30 Million per day.

The government is suggesting that this indicates the popularity of the new pension’s reform and that savers now “finally have real control over their hard earned money”.

Charities and industry experts are warning that people underestimate how long they are likely to live AND how long they will need to fund their retirement years.

5-Pension-Steps-for-a-better-lifestyle

The treasury is benefitting in the short term as only the first 25% of any pension withdrawal is tax free, the remainder is taxed at the recipient’s marginal tax rate.

 

The level of pensions’ withdrawal in our opinion is nothing to do with savers taking control over their hard earned money as the government says. If the government wanted achieve that, they should simply stop all forms of direct personal taxation!

It is more to do with the de-valuing of pensions in the eyes of the consumer as the pensions industry has failed to provide clear and transparent information to its customers’ and restricted their fund choices leaving consumers outdated and poor performing funds.

To really set your pensions free contact us

 

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Registered Address: 8f Millars Brook, Molly Millars Lane, Wokingham, Berkshire, RG41 2AD.

A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.