Pension Advice Allowance
Published / Last Updated on 12/02/2017
Pension Advice Allowance.
The Treasury has confirmed that new rules are to follow to allow people to withdraw up to £500 tax free from their defined contribution pension, without affecting other retirement options, to fund pension advice.
The retirement decision is a difficult one given the complex options that most people have and the need for financial advice.
The consultation period for the Treasury and as expected their findings and conclusions are as follows:
- £500 allowance can be withdrawn from your pension fund to pay for advice
- This can be done up to three times (throughout your life)
- It can be done anytime
- It is a tax free withdrawal and does not constitute an “unauthorised payment”
- It must be paid direct to the financial adviser from the pension fund.
Start date for the pension advice allowance is April 2017.