Should you take the pension on offer, or trade it in? Credit: A Richard Allen The Government is being urged to consider drastic rule changes that are preventing potentially millions of savers from using the pension freedoms.
Under existing rules you can use the freedoms, which give full control over how over-55s spend their pension money, only if you have a “defined contribution” plan.
Money held in “final salary” or “defined benefit” schemes must first be transferred out to a defined contribution scheme to enjoy the same benefits, which also include generous tax treatment on death.More than 200,000 people have already […]
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