How will the government's Pension Wise guidance service work?
If you are retiring after April 5th, you may be able to get free guidance from Pension Wise – a government initiative.
If you retire after April 5th 2015, you may qualify for free and impartial ‘guidance’ on what you can do with your pension. Not everyone will be able to get this free guidance. It will only be on offer if you have a ‘pension pot’ type of pension (rather than a salary-related one). You will be able to get guidance by phone, online or – depending where you live – face to face.
If you already have an annuity, you will be able to sell it, the government has announced
Around five million people will be able to sell their annuity and get a cash lump sum instead. How could it work?
The government has announced that if you have already bought an annuity, then from April 2016 you will be able to sell it and use the money as you wish. The Chancellor will announce a consultation into this in the Budget on Wednesday. How could it work?
If you're taking a lump sum from your pension, you may be taxed under the 'emergency code'
If you take money out of your pension under the new rules in April, you could end up paying a lot more tax than you expect
If you’re planning to take money out of your pension under the new rules from April 6th, you could get a nasty tax surprise. Why? Because most people will be taxed under the emergency code and will have more tax taken off them than they are likely to pay. The overpaid tax will be returned, but it could take some time.