Retired people who might otherwise have used ‘equity release’ to generate spendable retirement income are instead likely to use the new freedoms given in the 2014 Budget to draw more money from their pension funds, says the Daily Telegraph. Since interest ‘rolls up’ on equity release, the longer taking such a loan is deferred, the better.
Retired people who might otherwise have used ‘equity release’ to generate spendable retirement income are instead likely to use the new freedoms given in the 2014 Budget to draw more money from their pension funds, says the Daily Telegraph. Since interest ‘rolls up’ on equity release, the longer taking such a loan is deferred, the better.
Many people, even those with only the state pension as income will be able to withdraw income from their pension funds with no or low income tax liabilities when the new rules come into effect next April. It may even be worth deferring the state pension so that even less tax is payable on pension fund withdrawals. For the larger lump sum withdrawals, factoring in the tax loss ( possibly at 40% of the amount drawn) will be really important before making a decision on whether and if so how, to take your money. There are some tricky issues here you may want to discuss with us.