‘I dipped into my pension cash – and was stung with a £20,170 tax bill’

‘I dipped into my pension cash – and was stung with a £20,170 tax bill’

Hundreds of thousands of people face poor value pensions and high tax bills as a result of accessing their pensions early, the City watchdog has warned.

A report from the Financial Conduct Authority found flaws with the new "pension freedoms" being used by those over the age of 55 to take their pension cash early.

Since April 2015 over-55s with a "defined contribution" pension have been able to take their pensions as cash in one, or several, lump sums. Previously, almost everyone simply bought an annuity, a contract that pays a guaranteed income for life.More than a million people have taken […]

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