Releasing Pension While Working

Beach coupleThis is becoming a popular option with some people in their twilight years, choosing to work fewer hours and supplement their income from their pension. Others may want access to their tax-free pension commencement lump sum and do not require income and remain employed full time. One thing to remember is that pension income is subject to income tax so therefore your gross pension payment will be added to your earnings and taxed appropriately. This on many occasions will push the individual into the higher rate tax bracket. careful planning may remove the need to pay the  tax. 

In many of these instances it would be possible to release the lump sum only or release your lump sum and regulate the amount of pension income to your needs rather than drawing the full benefits if they are not required at this time. This would be termed as drawdown.

This is an area where Independent advice is required and we can provide that.

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