Retirees, who work hard to save from earnings and make a handsome pension pot, feel like a kick on their mouth when asked to pay a big sum as tax on retirement. Before 2006, savers could boost the tax free cash, thanks to little quirks related to frozen pensions, but the rules toughened later.
Even better news is here with the new pension freedoms coming in April 2015 to allow people to spend their saved pension amount as and when required. However, the people who need to enjoy this pension bonanza need to do their homework, and if required, pay their financial advisors to help them make the best use of the plan. Though the rules were tightened up after 2006, but now new schemes would bring relief for these people. Act now to avail many benefits.