If you’ve reached state pension age and are on a low income, you may be able to claim Pension Credit
I’ve had a couple of emails about Pension Credit recently, from women who’d like to know if they’re able to claim it. Pension Guarantee Credit is available to you if you’re on a low income and have reached state pension age, and Savings Credit is paid when you reach 65. Figures from Age UK show that one in three people who are entitled to Pension Credit don’t claim it.
How to reduce your tax bill when you take money out of your pension after April 2015
You will be able to take money directly from your pension – but make sure you don’t get a large tax bill
Pension changes announced in the Budget (2014) mean that millions of people will be able to take money directly out of their pension in the future. The changes affect anyone who’s got a pension ‘pot’ (ie a pension that’s not linked to your salary). But what about tax? How much will you have to pay and how can you reduce your tax bill?
Budget changes to pensions - you'll have more freedom to take money from your pension and will get guidance
If you retire after April 2015, you may be entitled to free guidance on pension options and don’t have to buy an annuity
If you retire after April 5th 2015, you may qualify for free and impartial ‘guidance’ on what you can do with your pension. Also from 6th April 2015, people in workplace ‘defined contribution’ pensions (i.e. not final salary type schemes) and those with private pensions can take money from their pensions. Only people who are in workplace defined contribution or who have personal pensions can get the free guidance.