Tax Free £500 Pension Advice Allowance

Tax Free £500 Pension Advice Allowance.

Suggestions in the Financial Advice Market Review (FMAR) that people should be allowed to withdraw an amount from their pension fund at the age of 55 onwards without triggering a full ‘crystallisation event’ for your pension (where you could be taxed on it or indeed lose benefits) to fund pre-retirement financial advice may be taken up by the government.

The Government has started a consultation process for a 'pensions advice allowance' up to say £500. 

In addition, the government will also look at increasing the £150 Employer arranged advice allowance (tax and national insurance free) benefit to £500 also.

Comment

Anything that helps people fund pre-retirement and at retirement advice at such a complex and life changing time must be welcome.