New pension freedoms introduced in April 2015, have left more than half of over 55’s surveyed confused by the new rules. Nearly one in ten of over 55’s have subsequently changed their retirement plans in reaction to the reforms. Three quarters of over 55’s say they want no further changes, and the bewilderment caused means that people feel detached from the topic. Nonetheless we should be aware that the amount of tax paid for 2015/16 and 2016/17 has soared from the estimated £900 million to a whopping £2.6 billion tax bill. The total of tax paid suggests that the reforms have impacted the understanding of how best to use the flexibility given in the reforms. Making sure that you are in the correct tax bracket could help you to manage your pension pot. Seeking professional financial advice could help you to manage your retirement fund.
