Dont dash to encash

In response to a survey showing that one in five 60-year-olds planned to cash in their whole pension fund when the rules permit this next April, experts questioned by the Daily Mail said this would rarely be a good idea.

They would pay a lot of income tax on encashment and then, if they put their money into taxable investments, would pay even more tax.

The new pension freedoms arriving next April are confusing, not because the rules are complex but because what is in your best interests will depend on many personal circumstances such as health, tax and marital status. Despite the free, face to face, impartial guidance that is being promised it is highly likely that, in order to make specific decisions people really will need personal advice from a retirement planning specialist.